Virtualization, Cloud Computing Drive Ethernet Networking Space: IDC

Revenues in the Ethernet switching space jumped 32.7 percent in the second quarter, thanks to the growing adoption of such technologies as virtualization, cloud and VOIP, IDC said.

Virtualization, cloud computing and VOIP continue to drive the adoption of Ethernet networking, according to market research firm IDC.

In its Worldwide Quarterly Enterprise Networks Tracker report, released Aug. 23, IDC analysts found that second-quarter revenue in the Ethernet switching space had grown 32.7 percent over the same period last year, while revenue in the quarter for Ethernet routers jumped 11 percent.

According to Rohit Mehra, an analyst with IDC, businesses continue to adopt PoE (power over Ethernet) and Gigabit Ethernet technologies, thanks to a host of technologies ranging from virtualization and cloud computing to video and voice-over-IP applications and the growing number of network-attached devices.

There also continues to be rapid adoption of 10GbE switch technology, with revenues growing 87.9 percent in the second quarter over the same period last year, according to IDC analyst Cindy Borovick.

"The continued market recovery in 2010 is very encouraging, with all regions and market segments making a contribution," Borovick said in a statement. "For the first time there were more than 1 million 10GbE ports shipped in the quarter. The 10Gb adoption was driven by data center, cloud, and campus build-outs."

Cisco Systems continued to be the dominant player in the space, with a 65.8 percent share of the Ethernet switch market-up from 62.8 percent in the second quarter of 2009, though it dropped from 68.3 percent in the first quarter of this year.

Hewlett-Packard-which now counts products gained through its acquisition of 3Com and 3Com's subsidiary H3C in its numbers-finished a distant second, with 8.1 percent market share.

Cisco also claims 46.1 percent of the server provider router space, the same market share that it had a year ago, according to IDC.