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Dell’Oro Group Forecasts Most Significant First Quarter Drop in Ethernet Switch History

10 Gigabit Ethernet Is a Bright Spot

Redwood City, Calif. – March 02, 2009 – A recent market research report from Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, indicates that the Ethernet Switch market experienced a mid-single digit revenue decline in the fourth quarter of 2008. The report also indicates that the market is forecasted to decline in excess of 10 percent in the first quarter of 2009, as the market is poised to lose over $1 billion dollars in its quarterly run rate over the course of two quarters.

“Although this is the most significant first quarter forecasted decline in Ethernet Switch history, it is important to note that first quarter is typically seasonally weak,” said Alan Weckel, Director at Dell’Oro Group. “Businesses are canceling or delaying projects and distributors are lowering inventory levels. In addition, deteriorating macroeconomic conditions have coincided with what is usually the market’s weakest quarter of the year, exacerbating the decline in the first quarter of this year,” Weckel added.

The report also indicates that 10 Gigabit Ethernet (GE) will be the only segment to show sequential port and revenue growth in 2009, as purpose-built fixed 10 GE boxes for the datacenter begin to contribute significantly to 10 GE growth in 2009.

About the Report

The Dell’Oro Group Ethernet Switch Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged) and Layers 4-7. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@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 enable 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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