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Gartner says worldwide Ethernet switches revenue grew 24% last year

Driven by strong sales in Power over Ethernet (PoE) ports, worldwide Ethernet switches revenue increased by 24% in...


February 25, 2005  


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Driven by strong sales in Power over Ethernet (PoE) ports, worldwide Ethernet switches revenue increased by 24% in 2004, while Ethernet port shipments grew 22% year-over-year, according to Gartner, Inc.

Revenue surpassed US$12 billion in 2004, while more than 189 million Ethernet ports were shipped worldwide.

PoE ports command a premium of US$40 per port for a Fast Ethernet port and US$65 for a Gigabit Ethernet port, Gartner said. PoE port shipments more than tripled in 2004 with an estimated 18% of all wiring closet switch ports shipped in 2004 being PoE-enabled.

“Switches sold in the late 1990s are being upgraded with more-expensive platforms,” said Rachna Ahlawat, principal analyst for Gartner’s Enterprise Networking and Communications Worldwide group.

“Businesses that have not upgraded their networking infrastructure for the last four to five years because of limited budgets are now replacing platforms that are at the end of their lives or are no longer supported by vendors.”

Cisco Systems continued to dominate the market in 2004, as it accounted for 75.7% of worldwide Ethernet switching revenue and 40.6% of shipments.