10Gbps server migration: Where are we?

2013-01-31 11:20:36

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10Gbps server migration: The post-Romley era
Network World - Gigabit Ethernet has been the dominant server network option of choice for the past decade, with more than 200 million 1Gbps server ports shipped since the early 2000s. But the introduction of Intel's new Romley server platform, together with rapid adoption of virtualization options and the emergence of technologies such as big data, are fueling migration to 10 Gigabit Ethernet.This migration ultimately will spur an Ethernet switch refresh cycle and generate an estimated $50 billion in revenue for suppliers over the next five years, however the 10Gbps transition has been slow and is following a different path from that of 1Gbps.This article describes the current status of the 10Gbps server migration and explores the factors impacting it. We then discuss our view on the catalysts as well as the timing for 10Gbps to become the mainstream server network choice.
10Gbps server migration: Where are we?
10Gbps server network ports have been shipping in material quantities for more than five years. Nevertheless, in mid-2012, we estimate that 10Gbps ports are integrated on less than 20% of servers while 1Gbps ports had reached a server penetration rate of well over 50% by that point in their ramp. Why has the migration to 10Gbps been so slow? We believe it's due to five factors:• Price too high: Based on scenarios of typical data center deployments, connecting servers at 10Gbps Ethernet rather than 1Gbps provides a price advantage only when servers need more than five 1Gbps connections (Figure 1). However, there is a catch. Those scenarios assume 10Gbps Ethernet switches in the core. The use of 40Gbps and 100Gbps speeds -- which are not yet widely available -- may shift the point of price parity.
5 things Juniper must do to reignite growth
Despite beating Wall Street estimates with last week's Q3 results, Juniper (NASDAQ: JNPR) indicated Q4 revenue would be flat to slightly up from Q4 2011 and earnings would be down 20% to 30%, citing "challenging" market conditions marked by softness in the Americas.The company is also in the midst of a restructuring that's seen four top executives depart, 500 employees laid off, consolidation in some business units and an effort to streamline product lines and R&D investments -- like the decision to kill its own WAN optimizers and recommend Riverbed's. This operational reboot is the result of product misfires, like disappointing sales in data center switching and security, and the slow ramp in new service provider routing gear.
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