Dell'Oro Group Forecasts Fibre Channel Switch Sales Rebound in 2006; Fibre Channel HBA Sales Bolstered by Blade Server Market

Business Wire, Jan 26, 2006

REDWOOD CITY, Calif. -- In a newly released report, Dell'Oro Group forecasts manufacturer equipment sales of Fibre Channel switches to accelerate during 2006, and to surpass $2.0 billion by 2009.

"Sales of Fibre Channel switches stalled in 2005, largely because distribution partners took a long time to test and approve the new higher-speed switches from Brocade and McDATA -- not because of diminishing end-user demand," said Tam Dell'Oro, Founder and Principal SAN Analyst, "End-users have a healthy appetite for storage equipment, as demonstrated by EMC's and IBM's banner storage results in their most recent quarters. We think end-users plan to network their equipment to maximize utilization. Now, both Brocade and McDATA's high-speed switches have passed qualification and are widely available to users -- we think there is pent-up demand for these higher-speed switches," added Dell'Oro.

The Dell'Oro Group report also forecasts that Host Bus Adapter (HBA) manufacturers such as Emulex and QLogic will enjoy an extra boost in 2006, largely from the blade server market. According to the report, server vendors who manufactured their own blade server HBAs have captured the vast majority of this business to date; however, Dell'Oro Group expects this business to shift to the Fibre Channel HBA manufacturers over the course of 2006.

About the Report

The Dell'Oro Group 5-Year Forecast Report provides a complete overview of the SAN Fibre Channel industry with tables covering manufacturers' revenue, average selling prices, and port shipments (by speed 1 Gbps, 2 Gbps, and greater than or equal to 4 Gbps) for Fibre Channel switches and Fibre Channel HBAs. To purchase this report, contact Nancy Shawver at 1.650.622.9400 x223 or via email at Nancy@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 enable 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.