Metro Ethernet Boom Fuels Growth in 10-Gbit/s Components Market, New Report Finds

10-Gbit/s Ethernet port shipments are expected to top the 1 million mark in 2009, according to Light Reading's Components Insider

PRNewswire
NEW YORK
Nov 20, 2007

NEW YORK, Nov. 20 /PRNewswire/ -- Network operator demand for equipment that will enable them to deliver more robust carrier Ethernet services will spur significant growth in the use of 10-Gbit/s Ethernet components, with port shipments expected to top the 1 million mark in 2009, according to the latest edition of Light Reading's Components Insider (http://www.lightreading.com/commchip), a paid research service of CMP's Light Reading (http://www.lightreading.com/).

10-Gbit/s Ethernet Components: 2008 Market Trends analyzes current and projected use of 10-Gbit/s Ethernet components by systems vendors. It is based on the results of an exclusive, worldwide survey of more than 240 engineers, designers, and product managers who work for telecom and networking system equipment manufacturers.

Respondents were asked to rate 40 different suppliers by name recognition and reputation for product quality in various 10-Gbit/s Ethernet product categories. These independent ratings provide valuable insight into how 10- Gbit/s Ethernet suppliers are perceived by prospective customers.

The report includes sector and market analysis for the following product types:

-- 10-Gbit/s Ethernet ports
  -- 10-Gbit/s Ethernet optical modules, including SFP+
  -- 10-Gbit/s Ethernet PHY chips
  -- 10-Gbit/s Ethernet integrated switch devices
  -- 10-Gbit/s Ethernet proprietary switch devices

Companies mentioned in this report include: Aeluros Inc., Ample Communications Inc., Applied Micro Circuits Corp., Aquantia Corp., Avago Technologies Ltd., Avanex Corp., Bookham Inc., Broadcom Corp., Civcom Inc., ClariPhy Communications Inc., Cortina Systems Inc., Dune Networks Inc., Emcore Group Inc., Enigma Semiconductor Inc., Finisar Corp., Fujitsu Ltd., Fulcrum Microsystems Inc., Gennum Corp., Hitachi Data Systems Corp., Intersil Corp., Intel Corp., JDS Uniphase Corp., KeyEye Communications Inc., Luminent Inc., Marvell Technology Group Ltd., Merge Optics GmbH, Mindspeed Technologies Inc., Mitsubishi Corp., Multiplex Inc., NetLogic Microsystems Inc., Oplink Communications Inc., Opnext Inc., Optium Corp., Phyworks Ltd., PMC-Sierra Inc., Solarflare Communications Inc., Scintera Networks Inc., Sumitomo Electric Industries Ltd., SwitchCore Corp., Teranetics Inc, Texas Instruments Inc., TranSwitch Corp., Vativ Technologies Inc., and Vitesse Semiconductor Corp.

"2007 has been a significant year for 10-Gbit/s Ethernet, with the development of the first SFP+ modules representing the fifth generation of 10- Gbit/s Ethernet optical modules and the introduction of the first 10GBase-T products," notes Simon Stanley, research analyst for Light Reading's Components Insider and author of the report. "With significant reductions in component costs and the introduction of 10-Gbit/s Ethernet over copper based on the 10GBase-T specification, 10-Gbit/s Ethernet is set to grow further, challenging Fibre Channel and InfiniBand in the data center and bringing 10- Gbit/s performance to the desktop."

The growing adoption of 10-Gbit/s Ethernet is welcome news to component suppliers that have been waiting for demand to match initial expectations, Stanley says. "Component vendors have met many challenges over the past five years to bring 10-Gbit/s Ethernet to market, developing five generations of optical modules, five or six generations of PHY devices, and switch devices supporting 24 ports," he explains. "For those vendors that have stayed the course and achieved high ratings in our survey, there are now substantial opportunities to significantly grow volume."

Other key findings of 10-Gbit/s Ethernet Components: 2008 Market Trends include the following:

-- 80 percent of survey respondents say their company is developing
     systems with 10-Gbit/s Ethernet ports.
  -- Use of copper-based 10GBase-T will grow rapidly, with significant
     support already in place.
  -- 10GBase-SR and 10GBase-LR will continue to be the highest-volume 10-
     Gbit/s Ethernet optical interfaces for the next two to three years.
  -- SFP+ is rapidly replacing X2 and XFP as the most popular form factor
     for optical modules.

10-Gbit/s Ethernet Components: 2008 Market Trends provides critical data and analysis for a range of industry participants, including:

-- Suppliers of 10-Gbit/s Ethernet components that need independent
     analysis of expected market demand for their products, as well as
     deeper insight into buyer perceptions of their products and market
     position
  -- Telecom and networking equipment vendors looking for quantitative
     assessments of how their competitors will be using 10-Gbit/s Ethernet
     technologies in the coming months and years
  -- Investors needing a better understanding of the 10-Gbit/s Ethernet
     components sector, and which suppliers are best positioned within the
     various sub-sectors

10-Gbit/s Ethernet Components: 2008 Market Trends is available as part of an annual subscription to Light Reading's Components Insider, priced at $1,295. Individual reports are available for $900.

To subscribe, or for more information, please visit: http://www.lightreading.com/commchip. For more information about other Light Reading Insider services, please visit: http://www.lightreading.com/research.

To request a free executive summary of the report, or for details of multi-user licensing options, please contact:

Jeff Claudino
  Director of Sales
  Insider Research Services
  619-229-9940
  claudino@lightreading.com

  Press/analyst contact:

  Dennis Mendyk
  Managing Director
  Insider Research Services
  201-587-2154
  mendyk@heavyreading.com

  About Light Reading

Founded in 2000, Light Reading (http://www.lightreading.com/) is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. It reaches an extensive audience of executives and technologists within the telecom and enterprise networking communities, as well as the financial/industry analysts and investors who track these sectors. Light Reading was acquired by United Business Media in August 2005, and operates as a unit of CMP Technology.

About CMP

CMP (http://www.cmp.com/) is a media and marketing solutions company serving the technology industry. With the leading online, event, and print brands in all technology market categories, and with services and tools that reach beyond traditional advertising, CMP shapes and influences the technology industry worldwide. CMP publishes highly respected media brands such as TechWeb, InformationWeek, ChannelWeb, CRN, EE Times, and TechOnline; produces major industry events such as Interop, Web 2.0 Expo, XChange, Game Developer Conference, and the Embedded Systems Conferences; and provides business information and marketing services such as the International Customer Management Institute, Semiconductor Insights, and Second Life consulting for technology marketers. CMP is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion. For more CMP news, go to cmp.com/news.

SOURCE: Light Reading

CONTACT: Jeff Claudino, Director of Sales, Insider Research Services,
+1-619-229-9940, claudino@lightreading.com; or Press-analyst, Dennis Mendyk,
Managing Director, Insider Research Services, +1-201-587-2154,
mendyk@heavyreading.com, both for Light Reading

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