The market for Ethernet switches is forecast to shrink nearly 10 percent this year, according to the Dell’Oro Group.
Customers looking for lower prices
The drop will be the biggest since the dot-com crash upended sales in 2001.
Economic conditions have worsened rapidly and customers have shifted their focus. Instead of seeking more features for the same price or a small premium, customers are trying to get the same features and functions for a lower price, said Dell’Oro Director Alan Weckel.
In addition, the market opportunities that propelled sales in 2008 are disappearing or moderating, including sales in emerging markets, on-campus upgrades and data-center consolidation.
Dell’Oro says growth may occur among the new generation of 10 Gigabit Ethernet switches as products come to market. But sales of 1000 Mbps switches should decline.
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Excellent read, I just passed this onto a colleague of mine who was doing a little research on that. And he actually bought me lunch yesterday because I found it for him
So let me rephrase that: Thanks for lunch! Now with that out of the way I have a question. That is very interesting information; can you tell where did you get this info?
The projection came from the Dell’Oro Group. Thanks for your interest. Glad you enjoyed lunch.