Data Center Ethernet Switch Market Hits $8 Billion Run-Rate, According to Crehan Research Product mix stabilization and adoption of high-speed switches propel market to record results

SAN FRANCISCO, March 11, 2013 /PRNewswire/ -- According to the latest Data Center Switch report from Crehan Research, data center Ethernet switch revenues exceeded $2 billion in calendar 4Q12, putting this market on an $8 billion annual run-rate.   The report shows that calendar 2012 revenue growth far exceeded that of 2011, helped by a leveling out in the decline of Chassis/Modular Ethernet switch shipments – illustrated in the accompanying graphic – coupled with increasing adoption of 10 Gigabit Ethernet (10GbE) switches.

(Photo: http://photos.prnewswire.com/prnh/20130311/SF73817)

"Given that data center Ethernet chassis or modular switches command a considerable price premium over the market average, mix shifts in this segment can have a significant market impact," said Seamus Crehan, president of Crehan Research.  "Aided by stabilization in the mix of this data center Ethernet switch category, total market average selling prices fell only a little in 2012," he added.

The report also demonstrates that data center Ethernet Fixed/Top-of-Rack switches continue to reach record levels, as this form-factor not only sees increasing server access deployment, but also data center aggregation deployments.

In line with the overall market, Fibre Channel Switches also enjoyed revenue growth in 4Q12 and 2012, as higher pricing offset port-shipment declines.

Driven by increasing bandwidth demands and unique data center switching requirements to handle changing architectures and traffic requirements, continued growth and investment in data center switching is consistent with Crehan Research's long-term outlook, which recently forecast that this market would approach $16 billion by 2017.

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.  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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