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Analysts Share Optimism for 10 Gigabit Ethernet Prospects

As you know, this year may bring widespread adoption of 10 Gigabit Ethernet (10GigE) technology. This opinion was expressed by the leaders of Solarflare Communications. Their forecast was confirmed by analysts from Research and Markets, who studied the situation, albeit from a slightly different angle.

The report, entitled “World Gigabit Ethernet (GbE) and 10 Gigabit Ethernet (10 GbE) Test Equipment Markets”, focuses on test equipment for networks. However, the conclusions and predictions made by the research division of Frost & Sullivan (this company owns Research and Markets) echoes the words of the leadership of Solarflare Communications.

The fact is that the consumers of GbE and 10 GbE test equipment are not only representatives of the end-user segment, including corporate customers, but also equipment manufacturers, service providers and network operators. In addition, research and development institutions play this role; companies engaged in the deployment and operation of networks. Having analyzed the needs of these groups, one can judge the prospects of the industry as a whole.

The main conclusion of the report can be summarized as follows: the demand for the designated test equipment is expected to grow rapidly. The main incentive for this will be the migration of consumers from DSL lines (digital subscriber lines) to direct Ethernet connections. This will expand bandwidth, increase speed, and better meet the need for scalable connections. Deployment of triple-play and quad-play services was identified as key drivers of increasing demand for test equipment for GbE and 10GbE. Especially the authors of the report note the role of 10 GbE technology.

It is noteworthy that, according to experts from Research and Markets, the main potential for growth stimuli is associated with technological progress and price reductions observed in the industry. As you know, consumers are always ready to support the development of technologies, gaining additional opportunities while reducing prices.

Source: Research and Markets

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