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Dell’Oro Group Predicts Fibre Channel over Ethernet Adoption Will Be Challenged by High Priced Optics

Server Virtualization Pushes Users to High Speed Connections

Redwood City, Calif. – February 11, 2008 – A recently published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reveals why 8 Gbps Fibre Channel storage area network equipment will be more attractive than 10 Gbps Fibre Channel over Ethernet (FCoE) for storage area networks over the next five years.

The report discusses the merits of converging Fibre Channel and Ethernet technologies and compares and contrasts the pricing of 10 Gbps Ethernet and 8 Gbps Fibre Channel switches, adapters, and optical transceivers.

The report also discusses why server virtualization software and the proliferation of new generation servers with enormous increases in processing power will push users to connect their servers with higher-speed adapters.

“Users will likely adopt the next-generation 8 Gbps Fibre Channel switches and host bus adapters more slowly than they adopted 4 Gbps due to the additional 8 Gbps price premium,” said Tam Dell’Oro, President of Dell’Oro Group. “However, adapter manufacturers are hungry to move users to 8 Gbps so we expect to see steep price declines for this technology,” added Dell’Oro.

About the Report

The Dell’Oro Group SAN Five Year Forecast Report provides complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, and port shipments (by speed 2 Gbps, 4 Gbps, and greater than or equal to 8 Gbps) for Fibre Channel switches and Fibre Channel host bus adapters. To purchase this report, call Margaret Miles +1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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