Market Report - Scalable Ethernet for LAN, MAN & WAN

Market Studies
Scalable Ethenet for LAN, MAN & WAN

Published: June 2001
Updated: May 2002

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Scalable Ethernet for LAN, MAN & WAN
, a 300-page market study, is updated regularly to maintain currency with 10 Gigabit and Gigabit Ethernet products, standards, and technology

Scalable Ethernet for LAN, MAN & WAN

10 Gigabit Networks contains 300 + pages and is a comprehensive, in-depth, analytical market study that contains over 130 pages of detailed reports on all major vendor switches. It is produced by and revised quarterly by DAX Associates and is published by Information Gatekeepers

Scalable Ethernet is Hot!
Scalable Ethernet
promotes10 Gigabit Ethernet as the hot new technology! It is the next step in the evolution of Ethernet. 10 Gigabit Ethernet shifts Ethernet from a LAN-only technology to a LAN, MAN, and WAN technology. Major vendors have been introducing pre-standard 10 Gigabit Ethernet switches and port interfaces for existing Gigabit Ethernet switches. Enterprises and service providers are planning to deploy 10 Gigabit Ethernet technology in their networks. Service providers will deploy 10 Gigabit Ethernet switches in metropolitan area networks and in wide area networks to break up traffic bottlenecks in the network core. A key benefit of Scalable Ethernet is that it provides direct connection to SONET rings at OC-192, enabling end-to-end Ethernet networks over SONET. DWDM will leverage 10 Gigabit Ethernet in optical networks as a more efficient and less expensive technology than SONET.

Scalable Ethernet addresses the market impact and growth of 10 Gigabit Ethernet through graphics and text. 10 Gigabit Ethernet will have a profound impact on the networking market and will deeply penetrate the market in 2003. MAN/WAN revenues are expected to grow over 2500% to 1.8 billion in 2003 and to over 3.6 billion in 2004. This growth will continue exponentially over the decade as Ethernet continues to scale upwards.

10 Gigabit Ethernet is scheduled to become a standard in March 2002. The IEEE 802.3ae draft standard is moving smoothly through the standards process. The technical draft standard has been approved. No roadblocks are expected to impede its ratification on the specified date.

WDM Leverages 10 Gigabit Ethernet
Scalable Ethernet
addresses Wavelength Division Multiplexing (WDM) technology. It defines and explains WDM technology and describes typical WDM applications. WDM will leverage 10 Gigabit Ethernet technology in the LAN, MAN, and WAN. In the LAN, Course WDM (CWDM) will address the campus environment. In the MAN and WAN, WDM will be used for optical networks in the network core. It provides an attractive alternative to SONET because it is much more efficient for handling data traffic and is less costly to implement. CWDM will be used in the metro area where fewer channels are needed, while Dense WDM (DWDM) targets long-haul, extensive channel applications.

Gigabit Ethernet Industry
The Gigabit Ethernet industry has exploded since the IEEE 802.3z standard was unanimously approved and ratified by the IEEE Standards Board on June 25, 1998. The ratification of the Gigabit Ethernet standard, and interoperability testing among vendor products has sparked user confidence in Gigabit Ethernet products. Customer shipments of Gigabit Ethernet products began in 2Q97, and are now exploding with revenues of almost $2 billion for 1999 and forecasts of about $5 billion for the year 2001. Strong sales have exceeded initial forecasts, indicating user confidence in the technology and demand for large bandwidth. Gigabit Ethernet products are readily available from Gigabit Ethernet vendors and have been snapped up by users who have been deploying Gigabit Ethernet products to upgrade their networks over the past year.

Gigabit Ethernet KOs ATM
Scalable Ethernet
s addresses ATM as an alternative technology. It evaluates the strengths and limitations of ATM with respect to 10 Gigabit and Gigabit Ethernet. 10 Gigabit Ethernet is the network technology of choice. It provides massive bandwidth at a fraction of the cost of ATM. It provides scalability from 10 Mbps to 10,000 Mbps. It substantially extends the minimum distance for gigabit over fiber to enable enterprises and service providers to provide services over long distances. And its still Ethernet!

Scalable Ethernet succinctly points out the benefits and limitations of ATM and 10 Gigabit Ethernet and assesses these technologies with respect to the applications best served by each.

Extended Fiber Distance
Scalable Ethernet
presents and explains the fiber interface standards for 10 Gigabit and Gigabit Ethernet The Gigabit Ethernet industry has stretched the minimum fiber cable distances to over 70 km (43.5 miles) with high-power laser optics and single mode fiber to address long-haul fiber cable applications that include networked MANs and A last mile@ connections between enterprise networks and MANs. The 10 Gigabit Ethernet standard extends the minimum distance over single mode fiber to 40 km (25 miles), enabling enterprises to interconnect data centers with remote campuses and service providers to interconnect central offices (COs) within a network and connect COs with points of presence (POPS.)

Emerging Services
Scalable Ethernet
cites 10 Gigabit Ethernet as the technology that will accelerate the development of Ethernet MANs and WANs. It describes enterprise and service provider applications within the access and core networks,. It will expedite the proliferation of MAN services including high-speed Internet connections for enterprises, storage area networks (SANs), application services, web hosting, and other vital business services. These new applications for 10 Gigabit Ethernet technology promise even greater revenues for the 10 Gigabit Ethernet industry over the next decade.

Copper Interface
Scalable Ethernet
clarifies and explains the 1000Base-T copper interface standard, ratified in June 1999. It is in production by chip vendors, NIC vendors, and switch vendors who provide ports that comply with the 1000Base-T standard. This standard will benefit users with Category 5 UTP cable infrastructures by eliminating the added cost of fiber cabling for switches, servers, workstations, and other applications.

Gigabit Networks addresses the copper 1000Base-T interface standard. It clearly explains it in detail and addresses copper applications. It also addresses potential problems for copper cable running at gigabit rates.

Migration Path

Gigabit Networks focuses on Gigabit Ethernet migration and presents migration strategies for enterprise backbone, server farms, FDDI backbones, and power workstations.

Scalable Ethernet technology offers high performance and congestion-free connections for LANs, MANs, and WANs. It complies with Ethernet precepts and provides an easy and economic migration path from existing Ethernet, Fast Ethernet, or Gigabit Ethernet network configurations. 10 Gigabit Ethernet will be used in core networks and to aggregate Gigabit Ethernet.

Industry Metamorphosis
Scalable Ethernet
industry has undergone considerable change since its inception in 1997. 10 Gigabit Networks addresses the major changes within the industry since its inception. It discusses acquisitions of start-up companies by leading networking and telecommunication companies, cites startups that have terminated., and focuses on large telecommunication companies that have acquired prominent networking vendors. These industry changes have stabilized and strengthened this maturing industry, whose products are now readily available along with strong service and technical support. High volume production and strong competition among vendors is driving down pricing, making Gigabit Ethernet more affordable.

Scalable Ethernet addresses vendor acquisitions within the Gigabit Ethernet industry since its inception.

A broad spectrum of vital information
Scalable Ethernet
focuses on all aspects of Gigabit and 10 Gigabit Ethernet technology, including technology specifications, cabling, standards, tradeoffs between ATM and Gigabit Ethernet, migration strategy, and products from all prominent vendors, including: Gigabit Ethernet switches, NICs, test equipment, and semiconductor integrated circuits.

It clarifies Gigabit and 10 Gigabit Ethernet technology- its proposed solutions for specific applications, its development and implementation, its benefits and limitations, and more. It identifies the industry vendors, defines their market strategy and focus, and describes their products in detail and application focus through vendor/product profiles. This study presents a critical assessment of Gigabit and 10 Gigabit Ethernet technology with respect to ATM.

Scalable Ethernet addresses Gigabit Ethernet vendors and their products within a 130-page section that contains comprehensive, analytical product reports and detailed product pricing. The characteristics of Gigabit Ethernet switches, NICs, and test equipment from all Gigabit Ethernet vendors are presented in multiple tables with pricing for ease of comparison.

Information critical to needs
Scalable Ethernet
is critical to networking consultants, planners, and strategists and prospective investors and developers of Gigabit Ethernet and 10 Gigabit Ethernet technology who should be well informed about all aspects of the technology to insure that they make the right decisions. Current information is critical to network design and planning; product design and development, and product investments.

Prospective investors and developers of 10 Gigabit Ethernet technology should be cognizant of the facts presented in this report before making a significant investment decision. 10 Gigabit Networks is a must for 10 Gigabit Ethernet, Gigabit Ethernet, and ATM prospects, investors, and consultants who need to be comprised of the competition and the strengths and limitations of competitive products. It provides substantial savings by eliminating expensive market research.

Scalable Ethernet contains information critical to the information needs of:
  • Presidents and CEOs
  • CIOs and CFOs
  • Network planners and strategists
  • Network managers and administrators
  • Network software and applications developers
  • Network equipment makers
  • Investors and venture capitalists
  • Consultants
  • Strategic and long range planners
  • Network equipment vendors
  • Copper and fiber cable manufacturers and distributors


Executive Summary

  • 10 Gigabit Ethernet
  • Wave Division Multiplexing
  • Mature Gigabit Ethernet Market
  • Major Drawing Card
  • Gigabit Market History
  • 10 GbE Revenue Forecast and Growth
  • Copper Gigabit Ethernet Interface
  • 10 Gigabit Ethernet- A More Attractive Alternative to ATM
  • 10 Gigabit Applications & Cabling
  • 10 Gigabit Ethernet Standards Status
  • Gigabit Problems & Solutions
  • Quality of Service
  • Gigabit Ethernet vs ATM
  • Cost- ATM vs Gigabit Ethernet


  • 1.0 10 Gigabit Ethernet
  • 1.1 Wave Division Multiplexing
  • 1.2 Gigabit Ethernet
  • 1.3 History of Ethernet
  • 1.4 Evolution of Fast Ethernet
  • 1.5 Evolution of Gigabit Ethernet
  • 1.6 Gigabit Ethernet vs ATM

Technology Overview

  • 2.1 Ethernet Overview
  • 2.2 Fast Ethernet Overview
  • 2.3 Gigabit Ethernet Overview
  • 2.4 Fibre Channel Overview
  • 2.5 Gigabit Ethernet Physical Layer
  • 2.6 8B/10B Encoding
  • 2.7 Cable Limitations
  • 2.8 Half/full duplex
  • 2.9 Carrier Extension
  • 2.10 Packet Bursting
  • 2.11 802.3x Flow control
  • 2.12 10 Gigabit Ethernet Overview
  • 2.13 WDM Overview
  • 2.14 Quality of Service
  • 2.15 802.1p Packet Priority
  • 2.16 802.1Q Packet Tagging
  • 2.17 MPLS


  • 3.1 Plastic Optical Fiber
  • 3.2 Twisted Pair Cabling
  • 3.3 Fiber Optic Cable


  • 4.0 802.3ae Standard Progress
  • 4.1 The IEEE
  • 4.2 The 802.3ae Standard
  • 4.3 The 802.3z Standard
  • 4.4 The 802.3x Standard
  • 4.5 The 802.3ab Standard
  • 4.6 The 802.3ad Standard
  • 4.7 The 802.1p & 802.1Q Standards


  • 5.1 Fibre Channel Association
  • 5.2 Gigabit Ethernet Alliance
  • 5..3 10 Gigabit Ethernet Alliance

Migration Strategy

  • 6.1 Backbone
  • 6.2 FDDI Backbone
  • 6.3 Servers
  • 6.4 Workgroup
  • 6.5 Desktop

Viability of Applications

  • 7.1 Large File Transfers
  • 7.2 Multimedia Applications
  • 7.3 Desktop Video

Market Drivers

  • 8.1 The Computer Industry
  • 8.2 Network Congestion
  • 8.3 Bandwidth Consuming Applications
  • 8.4 Major Driving Forces

Obstacles to Growth

  • 9.1 Standards
  • 9.2 Cost to Deploy
  • 9.3 Cost- ATM vs Gigabit Ethernet
  • 9.4 Quality of Service
  • 9.5 ATM Competition

ATM vs Gigabit Ethernet

  • 10.1 Contending Technologies
  • 10.2 Gigabit Ethernet Highlights
  • 10.3 ATM Overview
  • 10.4 ATM Limitations
  • 10.5 ATM Classes of Service
  • 10.6 ATM Product Availability
  • 10.7 ATM Standards
  • 10.8 10 Gigabit & Gigabit Solutions
  • 10.8 ATM Solutions
  • 10.9 ATM vs10 Gigabit Ethernet Assessment

Market Forecast

  • 11.1 Penetration
  • 11.2 Revenue Forecast

Gigabit Hardware

  • 12.1 Network Interface Cards
  • 12.2 Switches & Routing Switches
  • 12.3 Buffered Repeaters
  • 12.4 Uplink modules
  • 12.5 Cabling
  • 12.6 Test Equipment
  • 12.7 Semiconductor Components

Vendor/Product Profiles

  • 13.1 3Com Corporation
  • 13.2 Alcatel Internetworking
  • 13.3 Alteon WebSystems
  • 13.4 Anritsu Company
  • 13.5 Avaya, Inc.
  • 13.6 Cisco Systems
  • 13.7 Compaq Computer
  • 13.8 Enterasys Networks
  • 13.9 Extreme Networks
  • 13.10 Foundry Networks
  • 13.11 Hewlett-Packard
  • 13.12 Intel Corporation
  • 13.13 LSI Logic
  • 13.14 Marconi Communications
  • 13.15 NBase Communications
  • 13.16 NORTEL Networks
  • 13.17 PMC-Sierra
  • 13.18 Riverstone Networks
  • 13.19 Vitesse Corporation

Strategies for Success

  • 14.1 Standards Compliance
  • 14.2 Interoperability
  • 14.3 Quality of Service
  • 14.4 The ATM Market
  • 14.5 Chip Suppliers
  • 14.6 Cable Manufacturers
  • 14.7 Equipment Manufacturers