Monthly Archives - April 2016

IEEE analyst hour

PoE Market Forecasts from the Dell’Oro Group

Did you miss the Ethernet Alliance’s Analyst Hour on Power over Ethernet? The Ethernet Alliance’s webinar discussed the outlook of the industry and future factors that will drive PoE growth. Keep reading to catch up on the latest market research conducted by the Dell’Oro Group for insight on the PoE industry.

Who is the Dell’Oro Group?

The Dell’Oro Group specializes in providing market research for the telecommunications, network and data center market segments to keep businesses informed about the industry.

What is driving the growth of the PoE industry?

IEEE has reported that PoE is “growing well beyond shipments of 100M ports per year” and the webinar noted that the figure will continue to increase with the growing adoption of 802.11ac Wireless Access Points (WAP) and the popularization of PoE lighting.

What role do Ethernet switches have in the PoE ecosystem?

IEEE analyst hour Alan Weck overviews the role that Ethernet switches have in the PoE ecosystem and notes that users are increasingly relying on WLAN (wireless local area network) as opposed to wired connections to connect to the internet. Alan Weck notes that Ethernet switching has evolved “from a role of user connectivity to one of infrastructure”. As the 802.11 Wi-Fi standards continue to improve, wireless connection performance will begin to rival the speeds of wired connections. This has become a dominant trend in mobile computing where users choose wireless connections over a wired connection. Faster WLANs will increase the demand for the adoption of faster wireless access point, and this, in turn, will increase the demand for faster Ethernet speeds beyond the current 1 GB rate.

What is the main factor influencing faster Ethernet speeds?

As users become increasingly mobile and rely on WLAN (Wireless Local Area Networks) to access the Internet, the demand for faster wireless access points (WAPs) will continue to increase. 802.11ax, the pre-standard faster than the current 802.11ac standard, is expected to arrive in 2019. The new pre-standard promises to deliver up to 10 Gbps rates. The improvement of wireless access points will push towards the adoption of 2.5 GB and 5 GB in the future. Alan Weck discusses that one of the main factors hindering the adoption of these two relatively new Ethernet rates are cost. But WLANs will continue to grow and place faster bandwidth demands on the backhaul of networks. IEEE PoE Analyst Hour

How will IoT influence PoE Port Growth?

When it comes to PoE port growth, Dell’Oro found that in terms of the Internet of Things (IoT), PoE lighting is the only sector expected to substantially fuel PoE growth. PoE lighting allows users to deploy low-powered LED lights using Power over Ethernet. This simplifies the deployment of lighting installation and removes the need for professional electrical installers and expensive electrical permits. To read more about the benefits of PoE lighting, click here.

What can threaten the growth of PoE lighting?

One of the main advantages that can fuel PoE lighting is the lack of legal permits needed to deploy a network. But a high volume of PoE lighting deployments running at full output power can potentially make for a fire hazard. Even though the scenario represents an extreme example, the analysts discussed the possible effects of regulation and how that would discourage new adopters. The market penetration of PoE lighting can unintentionally encumber traditional Ethernet deployment once regulation enters the picture. Alan Wecker discussed that “Lighting and building infrastructure is highly regulated. Traditional Ethernet is ubiquitous and cannot be burdened with regulation. If everything in Ethernet gets regulated because of this use case, many other use cases will look for alternatives outside the Ethernet ecosystem.”

PoE is Awaiting the standardization of 802.3bt. How does the pending standard affect the Ethernet ecosystem?

Though regulation is highly unlikely with current PoE standards, PoE is awaiting the standardization of the 802.3bt standard. The new standard promises to deliver up to 100 watts per PoE port. Power Sourcing Equipment that supports these new ultra PoE power levels justifies the fledgling concern for possible future regulation demands for the wiring technology. PoE is currently a cost-effective alternative to installing new electrical circuitry. It allows network administrators to deploy PoE in locations without the expense of electrical conduit permits. Regulation would only hinder the growth of PoE port shipments and discourage prospective PoE lighting customers from adopting the Ethernet ecosystem.

Other PoE market forecasts:

Alan Weck mentioned a couple other market observations in relation to switches. The market for Fast Ethernet switches will continue to decline. In addition, the bulk of the market will consist of 1 Gigabit Ethernet units while the 40 GB market will continue to decrease. The following diagram also includes market projections for 25/50/100 GB Ethernet and 2.5/5/10 Gigabit Ethernet units IEEE PoE Analyst Hour

Will IP telephones or VoIP phones impact PoE port growth?

IP Desk phones, as noted by Alan Weck, drove PoE port growth before 2008. With the introduction of instant messaging platforms and social media, experts predicted a sharp decline in the Enterprise IP Telephony market share. However, Dell Oro’s findings report neither a growth nor decline in IP Telephony.

Do these market forecasts include automobile Ethernet?

Unfortunately, these market forecasts do not include automobile Ethernet. Automobile Ethernet will be considered an entire breed of its own. IEEE recently introduced 802.3bw standard, which “specifies 100BASE-T- 100Mbps over a single twisted pair for automobile applications”. Click here to find out more about 802.3bw.

Sign Up for Our Newsletter

Subscribe to our newsletter to receive new product notifications, deals, and offers!
Fill out my online form.
Related Posts:
Google Fiber

Google Fiber Brings Low-Cost Internet to Kansas City

Google Fiber just announced that it will give low-income families in Kansas City, the opportunity to receive symmetrical 25 Mbps broadband services for $15/month. 25 Mbps just happens to meet FCC’s recently raised minimum broadband threshold. Internet service offerings below the 25 Mbps rate do not qualify as broadband. Kansas City residents also have the option of receiving 100 Mbps service packages for $50/month. Google Fiber also offers a 1Gbps service option and even a television service package. Google Fiber is a Fiber-to-the-Home (FTTH) service currently deployed in Kansas City, as well as other cities including Provo, Utah and Austin, Texas. The announcement as noted by Fierce Telecom, comes shortly after Google Fiber announced that it will no longer be providing free 5 Mbps services. The service will become available on May 19 and the best part about it for customers is that Google does not require them to sign up for contracts. Customers who do cancel their service are held responsible for returning their equipment no later than 21 days or Google will charge them for replacement fees. Prospective customers in the area can input their address on Google’s Website to verify if they qualify for Google Fiber

Why does Kansas City get to have Google Fiber?

Google opened its applications for Google Fiber in 2010 and collected a pool of nearly 1,100 interested communities. Kansas City boasts a population of approximately 2,428,362 and the lucky city got chosen to receive the enviable fiber service packages. Milo Media, Google’s Vice President of Access Services comments that Kansas City was chosen due to the company’s perceived ability to be able to build “quickly and efficiently”. Fiber deployment is an intrusive medium to deploy in communities, and a large part of the reason that Kansas City was chosen was due to the city’s promise to Google that it would stay out of the way. Forbes comments that “the city officials promised to get out of the media giant’s way. They didn’t dangle tax breaks, but they did deliver access to public rights of way, expedite the permitting process, offer space in city facilities and provide assistance with marketing and public relations.” The city’s agreement to not interfere with Google’s Fiber deployment played a key role. Click here to learn more about how Google Fiber seems to be choosing the cities for their Google Fiber rollout. Receive a Complementary Consultation   Google Fiber as an access provider seems like a dream to consumers with its killer broadband speeds at affordable rates. Google Fiber service packages make it difficult for local telecom providers to offer competitive service packages. But it’s also stimulating Fiber cable deployment. CNN notes that when Google Fiber launched its service available for the residents of Austin Texas, AT&T announced its intention to build a gigabit network in the city shortly after. When it comes to power, there’s no company that comes close to the amount of power it has on its users with such a monopoly on their personal data. But Google’s innovation seems to be ethically grounded with its many seemingly unrelated but innovative side projects such as the self-driving car and Google Loon—a project that grants Internet access to remote regions of the world. But Elon Musk is another ethical company that’s exploring new ways to bring affordable internet to the masses using microsatellites. Click here to learn more about how Elon Musk plans to bring “Unfettered internet access for the masses” at a very low cost”. Check Out Our Networking Gear   
NOTICE: We will be closed Thursday the 28th & Friday the 29th for the Thanksgiving Holiday