Published on 04 August 2009
For many companies that service the data center and
IT markets this year cannot end too soon. IT and data center product
sales like other industries have dropped considerably. According
to a report conducted by Dell'Oro Group, the total Ethernet Switch
market is forecast to decline almost 20 percent in 2009, the sharpest
decline since 2001, before it begins to rebound in 2010. The report
indicates that 10 GE and the data center will be catalysts for growth
during the next few years.
"Given the severity of the decline during the
first quarter of 2009, it will be difficult for the market to rebound
quickly to the revenue and port levels we saw in 2008," said
Alan Weckel, Director of Ethernet Switch Market Research at Dell'
Oro Group. "We believe that the data center will be one of the largest
drivers for growth beyond 2009, as the market is expected to begin
expanding again in 2010. However, it will be difficult for the market
to return to the robust growth rates it enjoyed over the past 5
years," stated Weckel.
The report indicates that Cisco's move into the server
market, HP's expansion of its data center portfolio as well as IBM's
entrance into the Ethernet Switch market, are examples that some
vendors will approach a more holistic product offering for the data
center going forward.
IT and data center vendors and service providers are
all keeping their fingers crossed in hopes that the New Year will
bring better sales. When asking a data center electrical equipment
sales person who wished to remain anonymous what he thought about
the report he stated, "2009 cannot end soon enough for me!"
To read further, please visit the Data Center Journal
website:
http://datacenterjournal.com/content/view/3059/41/
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