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Ethernet switching in high gear in Q2

Ethernet switching in high gear in Q2

$5.9 billion market stoked by campus and China

The Ethernet switch market grew 7% sequentially and 4% year-over-year in the second quarter 2015, to $5.9 billion. China and campus switching drove the quarter, according to Dell’Oro Group.

Upgrade cycles in both campus and data center in all regions of the world bucked economic and political headwinds in Europe and China. Dell’Oro expects record revenue in 2015 and 2016 as new products in 2.5/5G and 25/50G switching ramp.

Larger enterprises are adopting multigigabit 2.5G and 5G for high-speed campus wireless LAN connectivity. Those port speeds are designed to support newer, higher speed access points, like 802.11ac Wave 2.

Twenty-five gigabit Ethernet and 50G Ethernet are touted as natural migration conduits to 100G because the signaling and single-lane technology for 25G was developed during the 100G Ethernet process, which is four lanes of 25G. Some analysts believe 25G could be the second highest Ethernet server connectivity technology sold and shipped in the next five years, behind 10G; and vendors like Cisco and Dell have recently announced 25G-capable switches based on Broadcom's Tomahawk chipset.

Cisco, HP and Huawei remained the top three vendors in China, combining for $500 million during the second quarter, according to Dell’Oro. Tensions between the US and China, particularly over charges and countercharges of IT espionage, have apparently not thwarted Cisco’s vibrancy in the region despite the Chinese government’s attempts to do so.

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