25 Gbps Continues to Gain Share in the Cloud and Enterprise

REDWOOD CITY, Calif. – September 4, 2019 – In a newly published report by Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, shipments of Ethernet controllers and adapters marked the first sequential growth year-over-year (Y/Y) in 2Q 2019. The 25 Gbps continues to gain share in the Cloud and Enterprise markets.

“Shipments of 10 Gbps controllers and adapters were stronger than expected with demand from general enterprises and lower-tier Cloud service providers. Meanwhile, 25 Gbps continues to gain momentum across key vendors in the high-end Enterprise market,” said Baron Fung, Director, at Dell’Oro Group. “Among the major Cloud service providers, which generally deploy 25, 40, and 50 Gbps ports, growth was mixed, as select companies are still undergoing server capacity digestion. Thus, we continue to anticipate great volatility in this sector for these higher-speed ports.”

Additional highlights from the Controller and Adapter 2Q 2019 quarterly report include:

  • Total controller and adapter port shipments increased 3 percent quarter-over-quarter (Q/Q) in 2Q 2019.
  • Average sell price per port increased 6 percent Q/Q, which contributed to higher sequential revenue growth.
  • Amazon still commands more than 90 percent share of the Smart NIC market by ports shipped, although Broadcom and Mellanox gained share.

About the Report

The Dell’Oro Group Controller and Adapter Quarterly Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue; average selling prices; and unit and port shipments by speed (1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, and 100 Gbps) for Ethernet and Fibre Channel Over Ethernet (FCoE) controllers and adapters. The report also covers Smart NIC and InfiniBand controllers and adapters. To purchase this report, please contact us at dgsales@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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