Dell'Oro Predicts Demand

REDWOOD CITY, Calif. -- According to a recently published report by DellOro Group, the trusted source for market information about the networking and telecommunications industries, sales of Fibre Channel network equipment to the emerging Internet portal companies over the next five years will more than offset any softness from traditional enterprises.

“The writing is on the wall. Consumers are just now in the early stages of proliferating personal information such as digital video that is fueling the explosive popularity of Internet portals like MySpace and YouTube,” said Tam Dell’Oro, President of Dell’Oro Group. “The quantity of data that will be generated by consumers will dwarf that of enterprises. However, these new Internet portal companies do not have the capacity to support the same cost structure as enterprises and are likely to seek the cheapest solution even if it means lower quality. Technologies such as Fibre Channel may be the best solution because it can scale to support the vast and complex networks these organizations will need — but it is likely not cheap enough. So the real question is whether Fibre Channel manufacturers can reduce prices fast enough to attract these buyers,” added Dell’Oro.

Dell'Oro Group