SANTA CLARA, Calif. — The market for Ethernet switches is undergoing a sea change. The total available market is declining, mega datacenters are increasingly dominating the sector, and the business is shifting toward China.
Those were the conclusions Alan Weckel, a vice president for enterprise and datacenter research at Dell'Oro Group, presented in a talk at the Ethernet Summit here.
The market for Ethernet switches in mega datacenters will rise from about $10 billion this year to more than $14 billion in 2018, dominating the overall market (below).
Ethernet switching market shifts to big datacenters.
(All slides courtesy Dell'Oro Group)
Since 2011, merchant silicon has been supplanting ASICs, with Broadcom and Intel's Fulcrum capturing significant share. This year marks the transition to a fully horizontal market with operating systems, chips, and systems all coming from separate companies, said Weckel.
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