* Network processors regain old momentum
Among analysts, at least, there seems to be a new optimism for old technologies. Last week I relayed analysts’ enthusiasm for Ethernet switches; this week network processors are on the receiving end of renewed hype.
Network processors were once touted for their flexibility and speed; they were to have the speed of specialized ASICs but with the flexibility of general-purpose processors. Oh, they were going to be cheap, too. As with most young technologies, expectations were set too high and capabilities were over-promised. But network processors have steadily gained traction, and at least one industry watcher sees great strides ahead.
Research firm In-Stat is saying that the network processor market is recovering from several sluggish years. In 2004, the overall network processor market – measured in units shipped – grew 86% from the previous year. In terms of revenue, In-Stat says the market should reach half a billion dollars by the end of 2008.
Much like Dell’Oro Group’s Ethernet switching forecast last week, In-Stat sees the most potential at the high end, where 10 Gigabit Ethernet is used. In-Stat says high-end processors grew 155% from 2003 to 2004 – and will represent a quarter of the entire market in 2008, vs. 8% in 2003.
The firm says high-end network processors will find most use in places where high speed is combined with multiple protocols – such as places where LANs meet storage facilities.
Intel had the top market share in the first half of 2004, but EZchip is experiencing the most rapid growth, at 168% year-over-year.
