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Dell’Oro Group Forecasts Storage Area Networking Demand to Shift from Fibre Channel to Fibre Channel over Ethernet by 2011

New Entrant into the Server Market and Higher Throughput Servers Bolster Fibre Channel over Ethernet

Redwood City, Calif. – August 17, 2009 – A recently published forecast report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, predicts Fibre Channel over Ethernet (FCoE) will be the primary alternative to Fibre Channel as a storage network fabric. Sales increases of FCoE switches and adapters are forecast to make higher contributions than Fibre Channel to the Storage Area Network market growth as early as 2011.

“Since FCoE will be a key datacenter technology, continued investment in this sector should bode well for the technology,” commented Seamus Crehan, Vice President of Dell’Oro Group. “New datacenter technologies and deployment models that have compelling return on investment prospects have resulted in increased investment in the datacenter. However, although FCoE may have a compelling cost-saving story, customers have to initially invest in the technology to reap these benefits. With today’s macroeconomic uncertainty, users are deferring new equipment purchases and lab testing. No matter how enticing the potential savings are on FCoE, if it doesn’t get tested in the lab it won’t get rolled out,” added Crehan.

The report discusses how Cisco’s entry into the server market in Spring 2009 may affect storage networking market dynamics. The report analyzes the relationship and changing vendor landscapes among servers, storage networking adapters, and switches.

About the Report

The Dell’Oro Group SAN 5-Year Forecast Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port shipments (by speed 2 Gbps, 4 Gbps, and greater than or equal to 8 Gbps) for Fibre Channel switches and Fibre Channel host bus adapters. To purchase this report, contact Emily Kendall at +1.650.622.9400 x223 or via email at 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 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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