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2004 could be a key year for GigE, report finds

A new report from research firm In-Stat/MDR projects that 2004 will be a key year for the deployment of GigE, and,...


February 10, 2004  


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A new report from research firm In-Stat/MDR projects that 2004 will be a key year for the deployment of GigE, and, to a much more limited extent, 10 GigE.

Most vendors cite the rapid drop in GigE ASPs, and the growing inclusion of GigE connectivity in business PCs as the key drivers for the growth in shipments.

However, “the most significant barrier to adoption appears to be the common perception among potential customers of the simple lack of need for a full Gigabit of bandwidth to the desktop, or a full 10 Gigabits of bandwidth anywhere in the organization,” says Sam Lucero, an industry analyst with In-Stat/MDR.

This theory is supported by results of a recent In-Stat/MDR survey of business end-users. In the survey, 64% of respondents cited simply a perceived lack of need for a Gigabit of bandwidth as the primary reason for not having deployed GigE.

This was followed by the perception that a Gigabit of bandwidth is not justified by current prices, and the lack of budget, currently, to deploy GigE.

Other key findings from the survey include:

* Slightly over 54% of the respondents stated that their organizations had not deployed GigE. Not surprisingly, enterprise organizations were the most likely to have deployed GigE, while smaller organizations were the least likely;

* CAT5 is the most widely deployed cabling infrastructure cited by respondents, followed by CAT5e, and

* Respondents cited the desire to prepare for future expected bandwidth needs as the top reason for deploying GigE, followed by provisioning sufficient bandwidth for converged networks and reducing delay/latency in the network. This finding underscores the current lack of a “killer app” driving GigE deployment.

Essentially, deployments are being driven by price reductions that allow customers to think of GigE as viable “future-proofing” connectivity option, when new infrastructure needs to be deployed, In-Stat said.