Record Number of 25 Gbps Ports Shipped in Q1 Despite Server Slowdown

In BICSI Bytes, Newsby

A recent Dell’Oro Group reported stated that shipments of 25 Gbps Ethernet controller and adapter ports reached a record in Q1 2019, despite the Server market slowdown. Meanwhile, the rest of the Ethernet Controller and Adapter market remains challenged.

“Shipment of 25 Gbps ports surpassed 1.5 million, the highest level ever, despite a slowdown in server shipments to Amazon, the largest end-user of 25 Gbps,” said Baron Fung, Director at Dell’Oro Group. “The Tier 2 Cloud and high-end Enterprise segments drove the demand for 25 Gbps, displacing 10 Gbps ports. Growth of 10 Gbps ports was further hampered as the general enterprise segment, which is transitioning to 10 Gbps, started to ease out of a server refresh cycle.”

Additional highlights from report include:

  • Total controller and adapter port shipments declined 3% quarter-over-quarter in Q1 2019;
  • 25 and 100 Gbps ports are expected to drive the majority of growth in 2019; and
  • The Smart NIC market is forecast to grow nearly 24% in 2019.