Dell’Oro Group recently held a lunchtime presentation and discussion on Software Defined Networks (SDN) and related technologies in San Jose.

At the luncheon, Alan Weckel, our vice president covering the Ethernet Switch market, led the discussion.  Alan has also recently authored several Advanced Research Reports on data center switching and related technologies, including Cloud and SDN.

Alan’s presentation addressed:

  • SDN
  • White Box switching
  • Cloud impact on enterprise switching spend
  • New Ethernet Switch forecast through 2018.

One of the highlights was his discussion of L2 + L3 Ethernet Switch Revenue by Deployment Location.


According to Alan’s presentation, the data center will become an increasingly large portion of the Ethernet switch market (see Figure above).  However, even in its growth, the data center portion is becoming a battle ground as traditional vendors battle white box vendors for market share in the Cloud.

White box switching started in 2008, when Google began using custom-built switches replacing those manufactured by Force 10.  For the next four years, it remained a niche practice confined to the largest content providers.  However, things began changing in 2013, when the number of customers using white box began to increase and white box switching began to replace enterprise data centers via the outsourced Cloud.

We have been tracking white box shipments internally since 2008.  Since our 2011 Cloud Advanced research report, we have monitored the potential disruption to vendors posed by white box switching.  But now is the time to incorporate white box into the Ethernet Switch market in order to more accurately track the megatrend of the outsourced Cloud.  Thus, we now include physical white box switching in our Ethernet Switch Forecast.

Thank you to everyone who attended this presentation and discussion.  For further information on this topic, see Alan’s latest Ethernet Switch 5-Year Forecast.


Posted by AdminDG Dell'Oro on February 7, 2014

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