Orange County Business Journal

QLogic Tops Emulex on 10-Gig in Q2

Chris Casacchia Wednesday, August 29, 2012

Aliso Viejo-based QLogic Corp. in the second quarter overtook Emulex Corp. of Costa Mesa in a key segment of networking electronics.

QLogic became the top seller of 10-gigabit Fibre channel-over-Ethernet adapters in the June quarter with $7.9 million in sales, or 51.6% of market share, according to market tracker Crehan Research Inc.’s newly released data.

Emulex was No. 2 with $5 million in sales, or 32.7% of market share. It had held the revenue lead in the first quarter with $8.4 million in sales and nearly 48% market share.

Irvine-based chipmaker Broadcom Corp. was No. 3 with $2.4 million in sales in the June quarter, or 15.7% of market share.

10-gigabit fibre-channel-over-Ethernet controllers and adapters connect servers to local area networks within data centers, speeding up the flow of information. Such technology is seen as an improvement over standard fibre-channel and 1-gigabit connections, which are prevalent in data centers today.

The battle in this segment is expected to last for years as established players and new companies enter the fray. They’re all fighting for a growing line of business, as 100 million 1-gigabit connections are projected to upgrade to 10-gigabit in the next five years.

A majority of the growth is pegged for 10-Gigabit Ethernet adapters.

QLogic, the market leader in fibre-channel adapters, entered the 10-gigabit race in 2008 with a converged network adapter.

QLogic and Emulex have one of the county’s oldest rivalries, dating to when Emulex spun off QLogic in the early 1990s. The rivals face stiff competition from a widening number of other companies, amid a shift from fibre-channel to Ethernet-based technology.