SAN JOSE, Calif. – Fibre Channel over Ethernet (FCoE) is driving sales and market share shifts for 10 Gbit Ethernet, according to a new report. Separately, passive optical network sales have hit a new high watermark, driven in part by deployments in China.
In a second quarter tie, Cisco Systems and QLogic jumped from fourth to third place in overall 10 Gbit Ethernet controller and adapter revenues, according to a new report from Dell'Oro Group. Overall the 10G Ethernet adapter and controller market is growing a robust 50 percent, but FCoE-capable products are soaring at a 300 percent annual rate, the report said.
Broadcom slipped from third to fourth in the second quarter rankings. Intel still leads the segment with about a 25 percent revenue share, followed by Emulex at about 16 percent.
"Every gain in market share ranking this quarter was correlated with an increase in FCoE business," said Sameh Boujelbene, a networking analyst at Dell’Oro, speaking in a press statement.
"Cisco is really pushing its Ethernet adapter business because it's such a differentiator for its UCS server products," said Tam Dell'Oro, president of the market research company. The networking adapters have become a business of "almost $20 million a quarter for Cisco, so it’s a nice little business for them," she said.
FCoE shipments have been growing at a faster rate than 10 Gbps Ethernet, making up an increasing share of total 10G controller and adapter sales, Boujelbene said. "Nevertheless, we calculate less than 40 percent of the FCoE-capable controllers and adapters are actually deployed to run FCoE traffic," she added.
FCoE aims to converge Fibre Channel storage and Ethernet networking traffic on one set of Ethernet links, creating cost savings. Cisco Systems, Emulex, IBM and others have been driving FCoE into the market for several years, targeting uptake at the 10 Gbit generation.
Emulex announced enhancements today to its 10Gbit networking products, as well as support for 16 Gbit Fibre Channel which it first demonstrated in April.
In a separate report, Dell 'Oro said the market for Gigabit passive optical networks (GPONs) grew ten percent in the latest quarter, hitting a new sales record.
"Although more than half of PON revenue was driven by deployments in China, aggregate GPON revenue derived from projects outside of China increased sequentially for the first time since the second quarter of 2010, driving sequential growth in the quarter," said Dell’Oro.
Latin America, Russia and the U.S. also contributed to the growth in sales of GPON optical line terminals and optical networking terminals, she said.
China still remains the key market for influencing overall vendor market shares. The report shows that Huawei was the top GPON supplier due to its position as leading supplier to China. It was followed by Alcatel-Lucent, Ericsson and ZTE, which all had significant shipments to China.