Government Regulations and Multimedia Spur Demand for
High-speed Switch Products

Released on = November 14, 2005, 9:23 am

Press Release Author = Shirley Hunt

Industry = Telecommunications

Press Release Summary = Frost & Sullivan finds that the World Enterprise Switch Market earned revenue of $ 14.4 billion in 2004. It is estimates to reach $ 19.4 billion in 2011.

Press Release Body = Palo Alto, CA – November 14, 2005 – Large enterprises find that in order to compete in the world economy, they need to provide support for complex multimedia applications. In addition, many government regulations, such as Sarbanes-Oxley, have placed a huge strain on already overtaxed computer networks.

Aging infrastructure of computer networks, caused by years of neglect due to the poor economy, has made it difficult for large corporations to meet government regulation requirements, and to use new multimedia technology. Corporations must upgrade their old networks with high-speed networks, which create significant opportunities for high-speed switch vendors.

Frost & Sullivan finds that the World Enterprise Switch Market earned revenue of $ 14.4 billion in 2004. It is estimates to reach $ 19.4 billion in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the World Enterprise Switch Market, then send an e-mail to Mireya Castilla - Corporate Communications at mireya.castilla@frost.com with the following information: your full name, company name, title, telephone number, e-mail address,
city, state, and country. We will send you the information via email upon receipt of the above information.

“Sarbanes-Oxley and other government regulations create enormous data storage requirements,” notes Frost & Sullivan Strategic Analyst Shirley Hunt.“Specialized storage area networks must be installed to handle these storage requirements. These special networks are very high-speed, directly storing files into permanent locations on servers. The network infrastructure, including the switches, must be powerful and fast in order to handle this enormous requirement.”

However, a difficult challenge for vendors trying to sell high-speed switches into Enterprise networks is that customers have a wide variety of technologies, applications, and equipment installed. It is often necessary to throw-out the old equipment, or to find ways to interoperate with it, in order to get the new equipment installed.

“More than 75 percent of Enterprise networks still use technologies that are 10 or more years old, such as Fast Ethernet,” explains Hunt. “The improving economy has allowed companies to once again invest in their network equipment infrastructure. In addition, many businesses, such as those who sell product over the Internet, and
those who compete internationally, have found that it is a strategic necessity to upgrade their equipment to the highest-level technology available. These companies are willing to dump the old Fast Ethernet switches and replace them with high-speed 1-gigabit and 10-gigabit speed switches, in order to remain competitive and meet
government regulations.”

The World Enterprise Switch Market is a part of the IP Communications subscription service, and provides an overview and analysis of this market. This study discusses issues in the modular and fixed switch markets. This research includes detailed market opportunities and industry trends that have been evaluated following
extensive interviews with market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities.
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World Enterprise Switch Market
F567-61

Contact:
Mireya Castilla
Corporate Communications – North America
P: 210.247.3830
F: 210.348.1003
E: mireya.castilla@frost.com

Janina Hillgrub
Corporate Communications – Europe
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F: +49 (0) 69 23 45 66
E: janina.hillgrub@frost.com

Sarah Lourdes
Corporate Communications – Asia Pacific
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F: +603 6201 7402
E: sarah.lourdes@frost.com

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Contact Details = Mireya Castilla
Frost & Sullivan
210.247.3830
mireya.castilla@frost.com