HP ProCurve Networks Updates Mid-Range Ethernet Switches

| Mar 17, 2009 | Enterprise Network Systems | Competitive Update

| Analyst: Bill Terrill

Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: Moderate

Event Summary

March 17, 2009 – The HP ProCurve 2910 Switch Series features four switches with an array of deployment options to tackle high bandwidth needs of customers ranging from mid-to-large enterprises to SMBs. The form factor of the 2910 Series is designed to allow medium-sized businesses and SMBs to grow their networks. Also announced are three 10 Gigabit modules, which fit directly into the 24-port 2910 switches, allowing customers to add more 10 Gigabit uplinks as their networks expand.

Analytical Summary

• Current Perspective: Positive on HP ProCurve Networking releasing four new fixed Ethernet switches for in the 2910 Switch Series because these units keep the HP ProCurve Networking mid-range switch portfolio technically current and add credibility to the on-going HP ProCurve Networking direction. These four new switches and the optional 10G Ethernet modules provide the sales and marketing force with additional tools to move into enterprises of all sizes. By maintaining management compatibility with the 2800 and earlier 2900 switches HP ProCurve can point to continued investment protection of existing products while offering the latest advancement in technology.

• Vendor Importance: Moderate to HP ProCurve Networking because these products incorporate the latest technology for mid-range Ethernet switches including features that will be more important over the coming months. The 2910 switch family can now be positioned as offering performance and pricing that matches the needs of the enterprise today with the ability to extend the functionality as needed in the future. By supporting pre-standard 802.3at PoE, full wire speed operations, 10G Ethernet connectivity and competitive pricing, this switch family will be competitive for some years to come and will allow HP ProCurve Networking to penetrate enterprise data centers of all sizes.

• Market Impact: Moderate on the Fixed Switching market segment as this announcement and the related products offer higher performance capabilities in a “lower-end” switch. This will force many of the competitors to respond with equivalent products and marketing programs to try to counter the HP ProCurve Network offerings. All major enterprise infrastructure vendors will need to offer similar capabilities in the near-term and at competitive prices.

Recommended Competitor Actions

• All competitors should point out the fact that the 802.3at PoE+ standard is still not finalized. This could potentially require that pre-standard products would require a hands-on upgrade to meet final specifications. At this time the list of products requiring PoE+ capabilities is minimal and competitors can indicate that this product premature from a standard position and is not currently needed in most environments.

• Cisco should point out its more extensive product line as a competitive advantage. While the HP ProCurve switch line is growing, the Cisco product set still offers more options. This should be used to counter the HP ProCurve pricing advantage as well by offering products that are (generally) more closely aligned with the immediate customer needs.

• While the 802.3at PoE+ is not yet a standard, it will become a selling point as it approaches ratification. To that end all competitors will need to provide PoE+ capabilities within the next 12 months to meet the HP ProCurve challenge.

• Optional 10G Ethernet functionality can be pointed out as not needed in most small- to mid-sized enterprises. Competitors should offer lower priced switches to those clients and indicate that when those clients do need 10G Ethernet it may make more sense to buy the latest switches rather than add on. For clients wanting 10G Ethernet within a 12 to 18 month time frame, competitors should offer switches with 10G incorporated (if they have them).

• 10G Ethernet will become a mandatory capability for these mid-range fixed switches, so all vendors should be working on incorporating that functionality into their current and future switches. Without 10GE capabilities any vendor trying to market to all but the smallest firms will be out of the running.

CLIENTS ONLY

Competitive Positives and Concerns

Recommended Vendor Actions

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