Fibre channel switch prices rise

FC storage networking market sales for the third quarter of 2008 rose seven percent compared to the same quarter a year ago.

Sales of host bus adapters declined for the sixth consecutive quarter while switch sales moved in the opposite direction, rising 12 percent versus the year-ago quarter, according to Dell’Oro’s president and founder, Tam Dell’Oro.

“Fibre channel switch sales continued at a robust pace, and in particular users chose to spend on higher-priced, high-function, and high-speed switches. For the first time since 2002 overall prices rose,” said Dell’Oro.

“Brocade is certainly in the sweet spot — we estimate its new 8 Gbps products generated about one-third of its sales during the third quarter.

“Its new design win with IBM for 8 Gbps adapters is significant as we estimate IBM to be the largest reseller of Fibre Channel adapters,” added Dell’Oro.

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