100 GbE Data Centre Switches Surpassed 40 GbE in 2018

In BICSI Bytes, Newsby info@bicsi.com.au

Customer adoption of 100 Gigabit Ethernet (GbE) and 25 GbE datacentre switches increased significantly in 2018, with shipments of each technology more than doubling year-over-year (YoY), according to a recent Crehan Research report.

This increase drove the overall datacentre Ethernet switch market to its strongest shipment growth since 2015, as well as to record revenue results. Furthermore, annual 100 GbE datacentre switch port shipments surpassed those of 40 GbE, a transition that has occurred approximately just three years after initial high-density 100 GbE switch silicon-based systems started production shipments.

“10 GbE and 40 GbE datacentre switch shipments each declined in 2018, while 25 GbE and 100 GbE continued to grow significantly, signalling that we are now solidly in the 100/25 GbE era,” said Seamus Crehan, president of Crehan Research. “Because of its compelling value propositions, this modern datacentre architecture is now being widely deployed across public, private and hybrid cloud datacentres to handle a broad and diverse set of application workloads.”

Noteworthy results from the report:

  • Overall market average selling prices were very stable in 2018. Over the past four years, overall datacentre Ethernet switch average selling prices have fallen by less than 5% in total.
  • Cisco accounted for about half of total branded datacentre Ethernet switch revenues in 2018, driven by strong adoption of its Nexus 9000 series 100 GbE and 25 GbE products.
  • Although total 10 GbE datacentre switch shipments declined in 2018, 10GBASE-T shipments continued to grow, even with weakness in this segment in the latter half of the year.

“The wide deployment of 100 GbE switching, with an annualised port shipment run-rate now approaching the tens of millions, sets a very solid foundation for the upcoming 400 GbE ramp likely starting in the second half of 2019,” Crehan concluded.