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Dell’Oro Group Pushes Out Forecast to Next Higher-Speed in Fibre Channel Market

Fibre Channel To Meet Same Problems as 10 Gbps Ethernet

Redwood City, Calif. – August 16, 2006 – In a newly released report, Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, forecasts the majority of Fibre Channel switch and Host Bus Adapter sales will remain at 4 Gbps speeds beyond 2010. Sales of 1 Gbps Fibre Channel dominated the market for approximately five years, 2 Gbps dominated for four years, and the report predicts 4 Gbps to dominate beyond five years.

“In general, manufacturers invent and build higher speed solutions that offer customers a price advantage on a per gigabit of bandwidth,” said Tam Dell’Oro, Founder and Principal SAN Analyst. “But we don’t see 8 Gbps Fibre Channel being able to offer a price advantage over 4 Gbps speeds in the next few years. In addition, we expect 8 Gbps Fibre Channel will hit the same 15 meter distance limitation and laser jitter problems that Ethernet has at 10 Gbps speeds. Until 8 Gbps Fibre Channel or 10 Gbps Ethernet can offer a price advantage over 4 Gbps, the latter will be the logical choice.” added Dell’Oro.

About the Report

The Dell’Oro Group 5-Year Forecast Report provides a complete overview of the SAN Fibre Channel industry with tables covering manufacturers’ revenue, average selling prices, and port shipments (by speed 1 Gbps, 2 Gbps, and greater than or equal to 4 Gbps) for Fibre Channel switches and Fibre Channel HBAs. To purchase this report, contact Margaret Miles at +1.650.622.9400 x225 or via email at Margaret@Delloro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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