Wireless, wired Ethernet markets thriving

Opinion
Nov 21, 20062 mins

* Dell'Oro reports market health across the board

The Dell’Oro Group recently released reports that reflect the health of the markets for LAN switches, carrier Ethernet and wireless mesh nodes.

The research firm says shipments of wireless mesh nodes, used mainly for metropolitan Wi-Fi networks, should generate about $90 million in revenue in 2006. Tropos Networks leads that market with a 23% share. Dell’Oro says vendors are concentrating on smaller cities, where the governments are moving more quickly toward setting up metro wireless LANs.

The market for WLAN gear in small offices and home offices for the first time surpassed half a billion dollars in quarterly revenue.

Meanwhile, carrier Ethernet switch revenue is on track to exceed $2 billion this year, Dell’Oro says. The firm is tracking Ethernet switches that carriers are using in access and aggregation. Cisco and Alcatel are the two leaders in this market.

Ethernet switches in general exceeded $4 billion in the third quarter of this year. Layer 4-7 server load balancing and Power over Ethernet were the faster-growing segments, but Dell’Oro noted that even the mature Fast Ethernet market grew.

And lastly, Dell’Oro said it saw IP PBX market revenue grow 10% in the third quarter. The firm predicts IP PBX revenue to surpass those of traditional PBXs and key systems in 2007.

CORRECTION: Last week I highlighted the network put together for the SC06 conference. I made an error by omission, saying Foundry supplied the equipment for the backbone of the network; in truth, a mix of equipment was used in the backbone, from such vendors as Cisco, Force10 Networks and Juniper. Other vendors’ equipment was used in various places, which this diagram (PDF) shows.