Thursday, August 30, 2018

Dell'Oro: Sales of 25 Gbps NICs take off

Sales of 25 Gbps controller and adapter ports is forecasted to grow at a 45 percent compound annual growth rate over the next five years, according to a new report from Dell'Oro Group, as 25 Gbps advances to become the mainstream speed in cloud and enterprise servers.

“25 Gbps has seen a strong initial ramp-up and is now expected to be the dominant speed over the next five years. We have seen Amazon and Facebook as early adopters of 25 Gbps technology, but more end users are transitioning as product availability increases," said Baron Fung, Senior Business Analysis Manager at Dell'Oro Group. "There's been a steady wave of 10 Gbps to 25 Gbps migration as other cloud service providers and high-end enterprises renew and upgrade their servers. Shipment of 25 Gbps ports is expected to peak in 2021, when 50 and 100 Gbps products based on 56 Gbps serial lanes start to ramp-up," said Fung.

Additional highlights from the Server 5-Year Forecast Report:

  • The total controller and adapter market is forecasted to grow at a four percent compound annual rate, with 25 Gbps sales driving most of the growth.
  • Smart NICs could offer adapter vendors an opportunity to introduce innovative new products at higher price point, which could lower the total cost of ownership in the data center