2014

Crehan Sees Server-Class I/O Networking Revenues Reaching $2.5 Billion Ethernet and Infiniband Growth to Offset Gradual Fibre Channel Decline

SAN FRANCISCO, July 22, 2013 /PRNewswire/ -- In its recently released Server-Class Adapter & LAN-on-Motherboard (LOM) Long-Range Forecast Report, Crehan Research sees revenues hitting $2.5 billion by 2017.  The report forecasts that shipment growth in combination with an easing of average selling price declines will drive the revenue expansion. The report also predicts growth in Ethernet (including Fibre Channel over Ethernet) and Infiniband, offsetting a gradual decline in Fibre Channel (see accompanying figure).

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"The onslaught of traffic demands on data center networking is not only driving a continual increase in server-class adapter and LOM shipments, but it is also driving the need for higher-speed connections across all major protocols, including Ethernet, Fibre Channel and Infiniband," said Seamus Crehan, president of Crehan Research.  "This upgrade to higher-speed connections like 10 Gigabit Ethernet, 16Gbps Fibre Channel and FDR Infiniband  –  all of which command a price premium while offering a bandwidth discount  –  helps offset steeper price declines," he added.

The report also forecasts a return to stronger growth in the 10 Gigabit Ethernet Adapter and LOM market segment, after some softness.  The recent arrival of many new 40GbE- and 100GbE-capable data center switches for core and aggregation deployments will now give customers more comfort in upgrading the server access layer to 10GbE.

About Crehan Research Inc.
Crehan Research Inc. produces reports with very detailed statistics and information on the Data Center Switch and Server-class Adapter & LOM/Controller markets, including Ethernet, Fibre Channel over Ethernet (FCoE), Fibre Channel and Infiniband.  The company's reports are supported with rich insights and context to deliver increased value. For more information about Crehan Research Inc. email info@CrehanResearch.com, phone 650-273-8400, or visit www.CrehanResearch.com.

SOURCE Crehan Research Inc.



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