Week in research: Consumers not ready for 1 Gbps; Fibre Channel sees record Q4

Who wants 1 Gbps anyway? Even as Google (Nasdaq: GOOG) prepares to launch its Google Fiber product in Kansas City, Mo., a study from Point Topic suggests residential consumers are not yet willing to pay for gigabit speeds. The research firm looked at speeds that subscribers in the UK are currently using. While many households in the country can receive download speeds up to 60 to 70 Mbps, "apparently people rarely see much need for anything more," an ISPReview article notes. "Consumers are making a decision when they sign up to an operator's service that will usually be with them for at least a year and often two," said Oliver Johnson, Point Topic's CEO. "If you are offered more bandwidth then fine but if it comes at a higher cost then a more complex value judgment takes place." Article

Point Topic residential broadband demand
(Image source: Point Topic)

Video conferencing poised for comeback: Cisco (Nasdaq: CSCO) and Polycom (Nasdaq: PLCM) maintain the lead in the dedicated video conferencing market, an Infonetics Research study says, and the video conferencing segment as a whole is expected to "turn the corner" in Q2 2013 after a tough first quarter and a flat 2012. "Helping the market stay afloat were sales of PBX-based video endpoints, which more than doubled in 2012," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics. "PBX-based video is proving popular because it offers organizations a cost-effective way to enjoy multimedia communication using infrastructure they already have." Release

Higher-speed platforms drive SAN growth: Fibre Channel switch and adapter revenues crossed the $650 million mark in Q4 2012, reports Dell'Oro Group, with Brocade (Nasdaq: BRCD) posting a record $350 million in FC switch revenues for the quarter. The segment helped boost the storage area network (SAN) segment in the fourth quarter. "The transition to 16 Gbps, or 'Gen 5 Fibre Channel,' has been slower than previous speed migrations and product refresh is one of the key growth drivers. With 16 Gbps, FC customers are considering new features and functionality in addition to speed," said Casey Quillin, senior analyst at Dell'Oro. "I think the key take-away from this quarter is that the FC installed base is strong, committed to Fibre Channel, and willing to expend considerable capital to protect their SAN investment." Release