FCOE May Face High Prices

REDWOOD CITY, Calif. -- A recently published report by DellOro 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.

Dell'Oro Group