Ethernet Prices Drop as Cisco, HP and Juniper Competition Intensifies

By Channel Insider Staff  |  Print this article Print

While the number of ports was up, the Ethernet switch market saw revenue drop as vendors like Cisco, HP and Juniper vie for market share, analysts said.

Cisco Systems is facing increasing pressure from Hewlett-Packard and Juniper Networks in an Ethernet switching market that saw revenue decline in the first quarter, due to pricing competition, cutbacks in public spending and seasonal softness, according to market research firms Canalys and Dell'Oro Group.

In separate reports issued June 1, analysts with the both firms said they expect pressures on revenue to continue in the second quarter and throughout 2011, though they noted that the growing 10 Gigabit Ethernet market will remain strong as data center administrators continue the move from 1GbE environments.

"With most segments expected to decline in 2011, 10 Gigabit Ethernet top-of-rack switches will be the strongest-performing sector as servers are still in the initial stages of migrating from multiple Gigabit Ethernet connections to two 10 Gigabit Ethernet connections," Alan Weckel, director of Ethernet switch market research at Dell'Oro, said in a statement.

Canalys said the 10GbE space saw 69.9 percent revenue increases over the first quarter in 2010. Meanwhile, revenue of 1GbE ports grew 12.4 percent.

"We expect the battle for data center networks to intensify, as leading vendors aim their fabric strategies at creating simplified architectures," Matthew Ball, director of enterprise services at Canalys, said in a statement. "The battle for campus and branch-office environments, however, should not be ignored."

To read the original eWeek article, click here: Cisco, HP, Juniper Competition Drives Down Ethernet Prices: Analysts