Reportage on IDC Ethernet Tracker research on the size and value of the Ethernet switching market.
40Gbps Ethernet revenues were down 4.0% despite port shipments increasing 7.8%, reflecting ongoing price erosion in the market and unfavorable price performance ratios relative to 25Gbps and 100Gbpsproducts.
- 40G is dying, slowly. That most mainstream vendors are still mainstreaming 40G switching is baffling to me because 40G SFPs costs so much money (yes, even BiDir)
- I’ve heard that 40G is roughly four times more expensive per gigabit than 25G at manufacturing. Some factories may be pulling out of 40G because there isn’t enough volume to run the production lines.
25Gbps revenue increased 176% year over year with port shipments growing 359% year over year in 1Q18. 100Gbps revenue increased 83.8% year over year to $742.5 million and port shipments grew 117.7% year over year in 1Q18.
- Megaclouds are buying 25G and 100G for this growth in ports but they get cheap prices for the lower price increases.
- 100G increasing at faster than 100% per quarter is good news for enterprises.
10Gbps Ethernet switch (Layer 2/3) revenue increased 5.1%, coming in at $2.05 billion, while 10Gbps Ethernet port shipments rose 41.6%.
- Say its true ? 10G switches are being adopted ? Oh, no, they aren’t ……….
1Gbps Ethernet revenues were up 5.4% in the quarter, with port shipments up 15.8%, which reverses a trend from last year and shows the interest in refreshing campus and branch networks.
- Possible that 1G port shipments is LAN but more likely consumer and IOT is using 1G. Don’t believe that Enteprise is moving yet on upgrading Campus/Branch LANs.
Overall, across all speeds, port shipments in 1Q18 rose 12.0% year over year.
- Maybe we are realising that new switches have new software and can do better things than STP ? I hope so.
- New markets such as Consume, IOT and Cars are new markets for Ethernet
Cisco is doing fine because its selling software such as Tetration, Hyperflex and Intersight which means port numbers matters less than before. And the shift to licensing is very favourable to the bottom line over time.
Cisco’s dominance in Ethernet may be numbered | Telecom Asia : https://www.telecomasia.net/content/ciscos-dominance-ethernet-may-be-numbered