In a recent Dell’Oro Group report, global shipments of Ethernet controllers and adapters marked the first sequential growth year-over-year (YoY) in Q2 2019, with the 25 Gbps market gaining market share in the Cloud and Enterprise markets.
“Shipments of 10 Gbps controllers and adapters were stronger than expected with demand from general enterprises and lower-tier Cloud service providers,” said Baron Fung, Dell’Oro Group Director. “Meanwhile, 25 Gbps continues to gain momentum across key vendors in the high-end Enterprise market. Among the major Cloud service providers, which generally deploy 25, 40, and 50 Gbps ports, growth was mixed, as select companies are still undergoing server capacity digestion. Thus, we continue to anticipate great volatility in this sector for these higher-speed ports.”
Additional highlights from the report include:
- Total controller and adapter port shipments increased 3% QoQ in Q2 2019;
- Average sell-price-per-port increased 6% QoQ, which contributed to higher sequential revenue growth; and
- Amazon still commands more than 90% share of the Smart NIC market by ports shipped.