Sales Soar for Data Center Networking Gear

Sales of data center networking equipment have risen sharply and are on pace for 2010 to show 67 percent growth over the sector's 2009 sales, according to telecom research firm Infonetics.

“A new round of data center upgrades is underway, driven by virtualization, surging amounts of data, the growing need for storage, under-investment in 2009, and renewed life in the financial sector," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. "Even with a relatively flat third quarter and an expected down fourth quarter, the market for data center network equipment is poised to grow 67% in 2010 over 2009 to hit a milestone $7.6 billion worldwide.”

A new report from Infonetics sees strong gr0wth for data center switch ports to support 10 gigabit Ethernet, which accounted for 14 percent of data center switch ports in the third quarter of 2010.  Infonetics predicts 10G port penetration will reach about 50 percent by 2014, aided by rapidly falling prices.

For more details, see coverage from CRN, Phone Plus and Network World.