Willie Sutton was one of the most notorious bank robbers of the roaring 20’s, and according to legend, he was once asked, “Why do you rob banks?” To which he replied, “Because that is where the money is.”
I often find myself saying roughly the same thing when industry and financial analysts ask me “why go into the 10GbE market?” To which I reply, “Because that’s where the TAM (total available market) is.” We have presented the chart below at many financial and investor conferences. Some may argue about the overall numbers or the timeline of transition from Fibre Channel to Fibre Channel over Ethernet, but no one has fundamentally questioned the trajectory of the chart. This is perhaps the most important point a CEO can make. We are driving our business in a new direction because that’s where the money is going to be in the future.
Emulex is deeply committed to our core Fibre Channel business and we have already announced our first 16Gb/s Fibre Channel design win with IBM Power Systems. However, we are also driving wins in the new next convergence space and we are the only vendor to have design wins across all three network convergence protocols – IP, ISCSI and FCoE – and we have done this across a broad spectrum of server and storage OEMs. In the first four months of this year, we have announced new 10Gb/s Ethernet-based wins with EMC, Hitachi Data Systems, HP, IBM and NetApp and there are more to come. This market is gaining momentum because the fundamental value proposition for moving to a converged network based on 10Gb/s Ethernet makes sense and protects current investments. But if you need an outside opinion, ESG recently published a new paper that details why moving to one network makes business sense.
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