Features - Financial Plays Of The Week:

2G FibreChannel SAN INTERCONNECTION HW REVENUE GROWS 317%

Worldwide revenue for 2G FibreChannel SAN interconnection hardware grew 317% between the second half of 2001 and the first half of 2002, according to Infonetics Research's worldwide market share and forecast service, SAN Interconnection Hardware. Total FibreChannel SAN interconnection hardware revenue market hit $420 million in 1H02.

"The adoption of 2G FibreChannel in 1H02 was faster than we expected, indicating pent-up demand for these products," said Neil Osipuk, lead analyst of the report. "FibreChannel continues to be the dominant technology used for SAN interconnection among end-users and hosting service providers. The storage industry will eventually move toward IP, but the transition from FibreChannel will be gradual and lengthy, with a hybrid environment existing for many years."

1H02 FibreChannel SAN Interconnection Market Highlights

• The FibreChannel SAN interconnection hardware market totaled $420 million in 1H02 and is projected to grow 88% to $790 million in 1H03 (the total for the 2002 calendar year is projected to hit $926 million)
• 2G FibreChannel ports are projected to account for 70% of total FibreChannel ports shipped in CY02, compared to 6% in CY2001
• Brocade is the market share leader for both 1G and 2G FibreChannel revenue and ports; McData is in second place for 1G FibreChannel revenue and ports
• Growth in this market is being driven by the transition from 1G to 2G technologies as vendors begin shipping 2G in volume and 2G pricing drops closer to 1G pricing by late 2002
• North America leads in 1H02 FibreChannel SAN interconnection hardware shipments, followed by EMEA and Asia Pacific; the mix and growth rates among geographies is expected to remain stable through CY02

Infonetics's biannual service tracks and forecasts 1G and 2G FibreChannel SAN hardware, and will track and forecast SAN hardware that support additional network protocols such as iSCSI, Gigabit Ethernet, ESCON, FICON, DWDM, and Infiniband in upcoming deliveries. Companies tracked in this service include Brocade, Cisco, Inrange, McData, Nishan Systems, QLogic, and Vixel. Future deliveries of this service will also track Adaptec, ADIC, CNT, Compaq, Crossroads Systems, EMC, Hitachi Data Systems, Hewlett-Packard, IBM, Mellanox, Paceline, Pirus, SAN Valley Systems, StorageTek, Sun Microsystems, etc.

For the table of contents of this report, please contact Larry Howard, vice president, at larry@infonetics.com or 408-298-7999x225. For press inquiries, please contact Neil Osipuk, Directing Analyst, Data Centers and Hosting, at neil@infonetics.com or 408.298.7999x227.

Contact: Neil Osipuk, Directing Analyst, Data Centers and Hosting, Infonetics Research, 408-298-7999x227.