10GBASE-T to Enable 10G Data Center Networks

By Lisa Huff

It’s now been more than eight years since the “original” 10G Ethernet standard (IEEE 802.3ae-2002) was released, yet we just passed the milestone of 1 million ports shipped last year. And, the market has really started to grow in 2010 with that many ports shipped just in the second quarter. The majority of these devices have been deployed into data centers around the world. Most of them have been SFP+-based until just recently. So what suddenly spurred the market on?

Just like its predecessor, Gigabit Ethernet, the 10G market will grow faster now that 10GBASE-T is a reality. Some of you may say, well, 10GBASE-T has been available for a few years now – not really. While most of us refrain from admitting it most of the time, in the Ethernet market, nothing really takes hold until Cisco (CSCO) has adopted it, and lo and behold, Cisco just recently released its first switch blades with 10GBASE-T ports. While I’m sure Cisco would like to take most of the credit, I have to point to the chip manufacturers here for diligently working to reduce the chip power consumption below the threshold of 5W per port so they can be used in high-density switches. Aquantia, Broadcom (BRCM), Teranetics (now part of PLX Technologies (PLX)) and SolarFlare have all now produced chips using their 40nm processes that have power consumption numbers at 3-4W/port. In fact, some even advertise numbers lower than this, but I would recommend caution in counting on these decreased specs, since they are probably based on something less than 100m-reach.

All of the above mentioned companies are also working on lowering the power consumption even more by developing 28nm processes. But, for the time-being, the 3-4W/port seem to be enough for all the top switch manufactures.

Will 10GBASE-T Slow SFP+'s Growth in the Data Center?

By Lisa Huff
 
SFP+ is primarily being used in two markets currently – 10G Ethernet and 8G Fibre Channel. The Fibre Channel market is almost exclusively optical SFP+ modules while, the 10G Ethernet market is expected to see its largest growth in SFP+ direct-attach copper (DAC) products. SFP+ DAC will mainly be used in top-of-rack (ToR) switches that connect to servers within a rack. Multi-million port forecasts that are predicted over the next few years are predicated on an anticipated high-rate of adoption of this architecture in the data center. Even if this topology is used, once 10GBASE-T becomes more readily available, SFP+ DAC will be sharing its market with this less costly variant. Some OEMs believe quantities of each will be about the same, but I have my doubts. If history tells us anything, which it usually does, once the less expensive BASE-T variant takes hold, it usually pushes the more costly alternatives to much smaller volume.

But, right now it is a matter of timing. I am skeptical that the 10GBASE-T adoption in switches will be able to keep pace with the port-density need in the data center in the short-term. Both products will be needed in the long term – 10GBASE-T for inexpensive connections and 10GBASE-CR (SFP+ DAC) for lower latency, lower power consumption and more flexibility. Currently, if you want both copper and fiber ports on your 10G switch, you need to use SFP+ because there are no switches that contain both 10GBASE-T and optical.

PLX Technologies Acquires Teranetics for $36 Million

PLX Technologies (PLXT), a leading supplier of PCI Express silicon, is acquiring privately-held 10GBASE-T chip designer Teranetics for $36 million. While this move solidifies PLXT's presence as a data center networking chip supplier, it is not a great exit for Teranetics' investors. The company has raised $61 million since 2003, and along with Solarflare and Aquantia, makes up the leading triumvirate of 10GBASE-T chip suppliers. While 10GBASE-T power consumption per port has dropped as low as 3 watts as production has shifted to smaller process geometries, the technology is still advancing at a slow pace in the data center.

Teranetics key customers include Mellanox (MLNX), to whom it supplies the PHY for that vendor's 10GBASE-T LOM product. PLXT reported revenues of $30 million last quarter and has a market cap of $139 million.