Report: Cloud service providers muddy Ethernet adapter market

A report by Dell'Oro Group predicts that shipments of 100 Gbps ports will grow 79% this year due to the telecoms and cloud hyperscaler segments. (Pixabay)

Thanks in part to varied deployments by cloud service providers, the adapter market was somewhat volatile in the fourth quarter, according to a report.

A new report by Dell'Oro Group found that shipments of high-speed Ethernet controllers and adapters—25 Gbps and faster—had mixed results in the fourth quarter of last year.

During the same time frame, shipment of 10 Gbps adapters declined after six quarters of sequential growth as the enterprise server refresh cycle slowed.

Sponsored by Ribbon

Webinar: Identity Assurance – Restoring Your Customer’s Trust in the Phone

Learn about Ribbon Call TrustTM, an identity assurance solution that encompasses STIR/SHAKEN and on a per-call, real-time basis will: determine caller intent and identify bad actors from network and call data analytics; provide multi-dimensional reputation scoring using Machine Learning algorithms; and recommend optimal call validation treatment. And will do this for both IP and TDM phone calls. With Ribbon Call Trust™ you can defeat robocalls and fraud attacks, truly restoring your customer’s trust in the phone.

“Growth in server purchases across the cloud service providers was mixed. For instance, Amazon expanded server capacity in 4Q 2018, which drove the shipments of 25 Gbps Ethernet adapters. Conversely, Microsoft scaled back on server purchases which negatively impacted shipments of 40 Gbps ports,” said Baron Fung, director at Dell’Oro Group, in a prepared statement. “As a result, adapter vendors with a strong cloud exposure, such as Mellanox, saw more volatility than the prior quarters.

RELATED: Despite security concerns, Huawei flourishes in telecom equipment market—report

"On the enterprise side, shipments of 10 Gbps ports are starting to decline in tandem with the tail-end of the Xeon Scalable server refresh cycle."

Overall, the total controller and adapter port shipments were down 4% sequentially in the fourth quarter of last year.

Going forward, Dell'Oro's report predicted that shipments of 100 Gbps ports will grow 79% this year due to the telecom and cloud hyperscaler segments. The Smart NIC (network interface card) market is forecast to grow by nearly 40% this year.

Suggested Articles

Employers used to give some workers a company phone; now they have the option to offer company internet.

CenturyLink is not a wireless company, but the company expects to be an important player in 5G and IoT.

Verizon Business’ Chief Product Officer Aamir Hussain said four categories of Verizon Business services are hot commodities during Covid.