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| Ethernet Switch Market Analysis: Gigabit Ethernet
Getting An Edge |
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The overall worldwide Ethernet switch market grew
strongly in 2003, with total port shipments rising 16.0% from 166.3 million ports
shipped in 2002 to 193.0 million ports shipped in 2003. However, due to sharply
declining ASPs over the year, overall manufacturer’s revenue declined –11.8%,
from $13.0 billion in 2002 to $11.4 billion in 2003. In addition to a gradually
improving global economy, In-Stat/MDR believes that market growth in 2003 was
driven by a sharp increase in the total number of endpoints connected to the LAN;
an increasing diversity of traffic flows on the LAN, through network convergence;
heightened security awareness and threat of cyber-attack; tighter integration
with partner networks and to remote teleworkers; an increasing need to replace
aging equipment after three years of tight IT budgets; and, a continuing drop
in ASPs across all Ethernet switch product segments. In-Stat/MDR expects these
factors to drive continued market growth over the five year forecast period, with
total port shipments rising to 502.8 million ports shipped in 2008. In addition,
these trends are causing an underlying technology shift in the Ethernet switch
market, with increasing deployments of both L3 Ethernet switches and Gigabit Ethernet
switches at the network edge, as LANs become both more “intelligent” and offer
increased bandwidth. |
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