December 27, 2000, 9:52 AM — GIGABIT ETHERNET IS GROWING FAST, and 10Gb Ethernet will soon follow, according to a recent report by Scottsdale, Ariz.-based Cahners In-Stat. According to the report, "Gigabit Ethernet and the Power of Ten," gigabit Ethernet sales should expand from just under $2 billion in 1999 to more than "" $20 billion in 2004, with 10Gb Ethernet growing from $11 million in 1999 to more than $4 billion in 2004. "If you don't have some gigabit Ethernet somewhere, there's something wrong with that," says report author and Senior Analyst Lauri Vickers.
The report states that a number of factors will drive companies to implement gigabit and faster network technologies, including the bandwidth requirements of customer relationship management tools, voice and video over the LAN, and expanded Internet use. Corporate use of storage area networks and metropolitan area networks (MAN) will also demand the ever-faster speeds that 1Gb and 10Gb Ethernet can provide.
In the near term, the bulk of that speed will come from 1Gb Ethernet across copper, which allows companies to continue using their existing Category 5 wiring and is backward compatible with existing standards. The 10Gb Ethernet market will also grow, but more slowly. The 10Gb Ethernet will require fiber connections, meaning new infrastructure. As a result, the report indicates that 10Gb Ethernet will first make headway (outside of specialized LAN applications such as storage networks) in MANs and eventually migrate to wide area networks as companies decide to link existing metropolitan locations.