40 GbE losing market share, according to new data

40 GbE losing market share, according to new data

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A new report about significant trends in the ethernet switch market has revealed that 40 gigabit ethernet (GbE) shipments dropped by 14 per cent in the second quarter of 2017.
Conversely, 100GbE ports experienced a sevenfold increase in sales, according to the research from IHS Markit, exceeding one million ports shipped. The London-based information and analysis firm has predicted that 200GbE and 400GbE revenues will exceed $1 billion (£739.9 million) by 2019.
A report produced by IDC earlier this month revealed that the growth in the switch market masked a reduction in enterprise router sales, which dropped by 7.1 per cent in the second quarter of this year. The firm believe this was a result of software-defined architectures taking hold of the market.
Rapid adoption of 25GbE top-of-rack switches for cloud and hyperscale data centres encouraged the drop in 40GbE port shipments, while higher-capacity switches in enterprises spurred the rise in 100 GbE shipments.
The IHS Markit report revealed that that global ethernet switch market revenues expanded by ten per cent in the second quarter of 2017, pushing revenues to $6.2 billion. Total port shipments reached 160 million units, representing a 12 per cent year-on-year rise. 
Over the past five quarters, ethernet switch demand had shown consistent improvement, with strong data centre need appearing to drive trends.  The firm states that in 2016, weak enterprise campus demand misrepresented the numbers, but this has now steadied.
The report demonstrates that sales in North American and countries in Europe, the Middle East and Africa (EMEA) grew significantly, but the Asia-Pacific region actually experienced the fastest growth. 
In a statement, Matthias Machowinski, senior research director at IHS Markit, said: “The transition to 25/100GbE architectures in the data centre is in full swing, and for the first time, vendors shipped over one million 100 GbE ports in a quarter.
“The victim of this success is 40GbE, which has been declining for the past year. And already, the industry is looking ahead to the next generation of speeds, 200 and 400GbE, driven by unabated traffic growth in webscale data centres.”


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