Ethernet switch revenue up 4% in Q3 2014 to $5.6 billion

Ethernet switch revenue grew 4 percent sequentially and 5 percent annually in Q3 2014 to $5.6 billion, said Infonetics Research.

Demand from the public and financial services sectors contributed to the growth of Ethernet switch revenue in the third quarter.

Web-managed and fully-managed fixed switches achieved double-digit year-over-year revenue growth, while unmanaged and chassis switches declined.

10GE port shipments rose 26 percent year-over-year.

Ethernet switch market accelerating

40GE is taking over from 10GE as the new high-growth market segment: 40GE port shipments more than doubled year-over-year, with growth especially strong in the white box market.

100GE’s arrival on fixed switches and the introduction of lower-cost optics will drive growth in 2015.

“Ethernet switch market growth to accelerate, thanks in part to the introduction of 2.5G and 25G Ethernet. These new Ethernet speeds will be a premium offering relative to 1GE and 10GE to address bandwidth constraints in data center and campus networks, and should provide an additional boost to revenue,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

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