4Q12 FC Switch Revenue Best Ever for Brocade – Dell’Oro

In a newly-released SAN quarterly report by Dell’Oro Group, the source for market information about the networking and telecommunications industries, FC switch and adapter revenues surpassed $650 million in 4Q12.

Brocade realized a record quarter with FC switch revenues of over $350 million. The company saw a 7% sequential increase in FC switch revenue, and continued ramping its 16 Gbps products in the quarter. Cisco had soft quarterly results, which Dell’Oro believe were due to stalled sales as customers anticipated the release of its new 16 Gbps switch platform.

The report points to new products and the transition to higher-speed platforms as underlying drivers of the market growth.

"The transition to 16 Gbps, or ‘Gen 5 FC,’ has been slower than previous speed migrations, and product refresh is one of the key growth drivers. With 16 Gbps, FC customers are considering new features and functionality in addition to speed," said Casey Quillin, senior analyst at Dell’Oro Group. "I think the key take-away from this quarter is that the FC installed base is strong, committed to FC, and willing to expend considerable capital to protect their SAN investment."

The report discusses the outlook for market migration to 16 Gbps FC, as well as analyzes how FCoE is being deployed. Vendors with current FC switch and adapter offerings include: Brocade, Cisco, Emulex and QLogic.