Tae - can we add another $3 billion to the market cap?
The Ascent Of Gigabit Ethernet
By Joe McGarvey 1:30 PM. EDT
High-speed Gigabit Ethernet technology may not become available until 1997, but market research firm Dataquest Inc. anticipates that a market worth nearly $3 billion will emerge around the high-speed networking technology by the end of the century.
Despite a slow start, Trudy Barker, an analyst with the San Jose research firm, said the Gigabit Ethernet market will reach $2.9 billion by the year 2000.
Barker predicted that Gigabit Ethernet, which moves data through corporate local area networks, or LANs, at speeds of 1 gigabit a second, will make a significant impact on the networking market, although the technology's success also will depend on the development of Asynchronous Transfer Mode, or ATM, technology.
"Barring any lurking killer applications for ATM, Gigabit Ethernet will become the dominant backbone technology in the near-term planning horizon," said Barker.
According to Barker, ATM technology will play a significant role in the wide area network, or WAN, arena and in environments that require a single network to carry voice, video and data communications. Gigabit Ethernet, said Barker, will be widely deployed in environments that are data-intensive.
Dataquest can be reached at www.dataquest.com.
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