Applications:

New Networks to Reshape Backbone

Increased demand for continuous availability and use of applications, and an incremental scaling of resources is creating the need for swift, agile access to, and manipulation of, ever increasing computing capacities and consequently, more storage. According to In-Stat/MDR the relative costs of purchasing storage and servers, and their efficient and effective management, combined with a shortage of IT professionals, are driving demand for new backbone network solutions. As a result, the high-tech research firm projects that the combined market for backbone network solutions will experience a Compound Annual Growth Rate of more than 140% from 2002 to 2006, reaching a total of just over $173.3 billion.

"iBAN (InfiniBand Area Network) and SAN (Storage Area Network) are at the core of this new backbone network trend, with each solution filling unique needs and having its own value proposition," says Lauri Vickers, Manager of In-Stat/MDR's LAN group. "Despite our optimism for this market, new backbone networks will have significant hurdles to overcome, including a lack of integrated network management solutions, a "killer app" and major players in certain segments, in addition to competing topologies, high price points and the low profile of storage and servers within the overall networking story.

In-Stat/MDR has also found that:

• In addition to networking, storage and computing vendors, a surprising number of technology specific start-ups are also touting backbone network solutions. Service providers, software vendors and silicon manufacturers are also positioning this market to grow.
• SAN, in FC (Fibre Channel), iSCSI (a type of SCSI over IP) and IB (InfiniBand) implementations, will account for the majority of the new backbone networks through 2006. iSCSI and IB are expected to cannibalize FC SAN implementations. While FC is certainly an established solution, it adds a great deal of complexity and cost.

The report, "New Backbone Networks: InfiniBand & SAN Market Analysis" (#IN020457LN), analyzes technology and market trends impacting the overall Backbone Network hardware market and provides five-year forecasts for the major iBAN and SAN market infrastructure segments: switch and hub ports; HBA, HCA and TCA units. To purchase this report, or for more information, please visit www.instat.com/catalog/cat-ln.htm or contact Matthew Woods at mwoods@cahners.com or 617-630-2139. The report is priced at $2995 USD.

About In-Stat/MDR

In-Stat/MDR, www.instat.com, offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

In-Stat/MDR is a unit of Cahners Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

Contact In-Stat/MDR, Kirsten Skedd, Marketing Manager, kskedd@instat.com, 480-609-4534.