September 12, 2012

10 GbE, The Cloud and the Fat Part of the Hockey Stick

At Extreme Networks we have always taken pride in delivering exceptional bang for the buck – very good performance at a very reasonable price point. Today, in our press release, here, we back up this pride with feedback from the marketplace. Our 10GbE revenue grew at twice the industry rate.

With pundits talking about 40GbE, 100GbE and in some cases even terabit Ethernet the world of networking is certainly a fast and exciting place. However, the fat part of the hockey stick, the place where the real revenue is, will be 10GbE by 2015. With products like our award winning BlackDiamond X8, 8000-Series and Top of Rack Summit X670, Extreme Networks is well positioned for this transition.

Perhaps even more interesting than incremental increases in speeds and feeds for the industry is the widespread migration to The Cloud. While many organizations will certainly maintain their own, private Clouds, outsourced multitenant Clouds are fundamentally changing not only how IT is done but also how gear is purchased and who does the buying.

The Cloud is helping to drive consolidation in the data center. Per Dell’Oro, public cloud deployments are resulting in fewer, but larger data centers and with the fewer, but larger opportunities for vendors. Furthermore, these Cloud deployments are driving demand for equipment more capable of dealing with network abstraction, VM mobility and the east/west flow of data that highly virtualized environments create. These changes are swinging the pendulum away from “good enough” commodity gear to more specialized gear designed and engineered for the new data center, such as the BlackDiamond X8 and the Summit X670.

Oh, and while we are on the topic of hockey sticks, we can’t pass up the opportunity to plug Silicon Valley’s home team, the San Jose Sharks. Go Sharks!

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Extreme Marketing Team

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