SAN fibre channel market shows positive growth

SAN fibre channel market shows positive growth

Jul 28, 2005: The storage area network fibre channel has shown positive signs of growth, according to a report published by Dell'Oro Group, which has recorded that the market is 10 percent higher in the first quarter of 2005 than it was in the first quarter of last year.

The Dell'Oro Group is respected for being a reliable source for market information about networking and telecommunications industries.

In addition, port shipments grew 38 percent too during this same period, which indicates a healthy demand from companies to network their storage devices, according to the Dell'Oro Group.

The report shows that the annual growth was equally supported by sales in both the SAN switch and host bus adapter segments of the market.

John Carvell, the principal analyst for SAN research at Dell'Oro Group, added that the report also indicates that market shares shifted during the first quarter of 2005.

"In the modular switch market segment, Cisco has continued its string of sequential quarterly revenue growth as customers continue to adopt its MDS 9500.

"During the quarter, some of the other major vendors in this segment were plagued with one-time issues, such as consumers delaying purchasing decisions in light of uncertainty regarding product plans for McDATA, the leading vendor in this segment, and CNT due to their pending merger."

The Dell'Oro Group also forecasts that manufacturer equipment sales of switches and Host Bus Adapters (HBAs) will rise from $2 billion in 2005 to $4 billion in 2009. While the long-term outlook is bullish, manufacturer consolidation may slow sales near-term.

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