The Layer 2-3 Ethernet switch market is going gangbusters according to a new report from the Dell’ (News - Alert)Oro Group. The research shows the market exceeded $5 billion in the second quarter of 2013, even with mid-single digit year-on-year declines in both the Asia Pacific and Latin America regions. That marks record revenue growth for the market overall.
The Ethernet Switch Quarterly Report also finds that more than 10 vendors shipped 10G Base-T for the first time during the second quarter. Despite the new market entries, only three vendors topped 10,000 10G Base-T port shipments during that quarter.
It was a noteworthy quarter for Juniper Networks (News - Alert) as well, with the company regaining its revenue ranking of number three in the overall market. The company just announced it had purchased software defined networking (SDN) company Conrail Systems in a $176 million deal set to boost its position in the MPLS market.
"Cloud providers' insatiable demand for network equipment continues to spur almost all the revenue growth in the Ethernet Switch market," said Alan Weckel, vice president of Ethernet Switch market research at Dell'Oro Group. "Cloud providers' demand is offsetting delays in enterprise spending as enterprises push out the migration from 1 Gigabit Ethernet to 10 Gigabit Ethernet.”
According to Dell’Oro, data center growth may well stall in 2014 in tandem with maturity of the cloud market. That growth could remain on hold until 2015, when the research firm predicts enterprises will begin a large-scale migration to 10 Gigabit Ethernet.