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25 GbE Switch Demand Set to Negatively Impact 10 GbE Growth

 By Sean Michael Kerner | Posted Jun 29, 2018
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As organizations are increasingly choosing 25 Gigabit Ethernet (GbE), demand for 10 GbE is beginning to come under pressure, according to analyst firm analyst firm IHS Markit.

IHS Markit's Data Center Network Equipment Market Tracker - Regional - Q1 2018, reports that in the first quarter of 2018, data center Ethernet switch revenue reached $2.8 billion, up 12 percent year over year. Earlier this month, IDC reported total global Ethernet switch revenues for the first quarter of 2018 came in at $6.29 billion for a 10.9 percent year-over-year gain.

Of particular note in IHS Markit's report is a forecast for 2022, when the analyst firm expects that 25 GbE will grow to represent 16 percent of data center Ethernet ports shipped, up from only 6 percent in 2017. 100 GbE is expected to grow even faster, reaching 35 percent of data center port shipments by 2022, up from only 9 percent in 2017.

"We believe 25GE will have a noticeable negative effect on the growth of 10GE, as CSPs favor 25GE for server connectivity and 100GE at the access and core layer; as a result, 100GE top-of-rack (ToR) switches connecting to 25GE server ports and the availability of 100GE bare metal switches will continue to drive additional 100GE deployments," Devan Adams, senior analyst, cloud and data center switching at IHS Markit, wrote in a statement.

Adams noted that multiple vendors, including Dell, Arista and Juniper, have enhanced 25 GbE and 100 GbE hardware in recent months.

IHS Ethernet 1Q18

Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.

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