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Broadcom's 10 Gigabit Ethernet Controllers Achieve Nearly 70 Percent Market Share According to Dell'Oro Group

Posted on: Monday, 31 August 2009, 07:00 CDT

SAN FRANCISCO, Aug. 31 /PRNewswire-FirstCall/ -- VMworld 2009 -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has strengthened its position as the worldwide market leader in 10 Gigabit Ethernet (10GbE) controller units shipped. According to Dell'Oro market research(1), in the second quarter of 2009, Broadcom(R) 10GbE controllers achieved 69.3 percent market share (up from 44 percent in the first quarter of 2009) with the next closest competitor rating 15.7 percent market share. Broadcom has actively grown its 10GbE controller business from zero market share, as of the first quarter of 2008, to nearly 70 percent market share as of the second quarter of 2009. Today, all major server OEMs currently ship Broadcom's industry-leading 10GbE controller technology.

10GbE is increasingly important for virtual environments. As CPU cores continue to scale and network speeds increase, IT managers often prefer to run more virtual machines on a single system. This requires an increase in network bandwidth, which makes 10GbE connectivity a 'must-have' for these networks. However, today's virtualized networks sometimes come with sacrifices, such as reduced performance due to the hypervisor architecture, added overhead and a degradation of system performance. With its dominant market share position, Broadcom is delivering the superior 10GbE controller solutions that OEMs need for virtualized server environments. At 10 Gigabit per second (Gbps) speed, a single server can run even more virtual machines allowing for greater server consolidation and a subsequent reduction in capital asset costs for IT departments. Broadcom's 10GbE controller technology provides hardware acceleration, offload functionality, and VMware support to deliver the converged functionality needed for virtualized environments. The incorporation of these functions as well other virtualization technologies free CPU resources, increase bandwidth and performance and support both data networking and storage (iSCSI).

Broadcom has worked closely with VMware and key industry server manufacturers on achieving the best possible 10GbE performance for a virtualized server environment, and will demonstrate these capabilities at this week's VMworld 2009 show in San Francisco. The demonstration will utilize Dell PowerEdge servers with Broadcom NetXtreme(R) II BCM57711 10GbE controllers, and will show that the technology can:

• Increase networking bandwidth while reducing latency;
• Accelerate network traffic within the VMware hypervisor architecture;
• Optimize virtualized server deployment; and
• Provide a scalable architecture.
  

"The results of our work with VMware helped propel Broadcom to market share leadership in 10GbE controllers," said Vinod Lakhani, Senior Director & General Manager of Broadcom's High-Speed Controller line of business. "Our market share leadership, as validated by Dell'Oro research, shows our ability to quickly respond to market demands for feature-rich 10GbE controller technology, and our ability to quickly establish a leadership position by enabling IT departments worldwide with optimized networking communications in virtualized environments."

About Broadcom

Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything(R).

Broadcom is one of the world's largest fabless semiconductor companies, with 2008 revenue of $4.66 billion, and holds over 3,450 U.S. and over 1,350 foreign patents, more than 7,350 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

A FORTUNE 500(R) company, Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.

Cautions regarding Forward Looking Statements:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. Examples of such forward-looking statements include, but are not limited to, the market, demand and functionality for 10 Gigabit Ethernet controller products, and our position in that market. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom in connection with Broadcom NetXtreme II BCM57711 10GbE controller solution includes, but is not limited to:

• General economic and political conditions and specific conditions in the markets we address, including the volatility in the technology sector and semiconductor industry;
• The rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets;
• Changes in our product or customer mix;
• The timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; and
• The rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets.
  

Additional factors that may cause Broadcom's actual results to differ materially from those expressed in forward-looking statements include, but are not limited to the list that can be found at http://www.broadcom.com/press/additional_risk_factors/Q32009.php.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

Broadcom, the pulse logo, Connecting everything, the Connecting everything logo and NetXtreme are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.

(1) Dell'Oro Group Network Adapters Report, 2Q09, August 2009

Broadcom Trade Press Contact Heather A. Roberts Media Relations Manager 408-922-8195 hroberts@broadcom.com Broadcom Investor Relations Contact T. Peter Andrew Vice President, Corporate Communications 949-926-5663 andrewtp@broadcom.com

SOURCE Broadcom Corporation; BRCM Enterprise Networking

Source: PR Newswire

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