“We recently raised our Smart NIC revenue forecast because of strong adoption among the hyperscale cloud service providers,” said Baron Fung, Research Director at Dell’Oro Group. “An increasing share of the hyperscale servers will be deployed with 200 Gbps and higher speed server facing ports for accelerated computing, and for next-generation general-purpose servers.
“Most manufacturers will be bringing enterprise-class Wi-Fi 7 products to the market in 2024, a year in which revenues are expected to contract, after the peaks of 2022 and 2023,” said Siân Morgan, Wireless LAN Research Director at Dell’Oro Group.
“Despite near-term data center capex growth headwinds as the major cloud service providers and enterprises optimize their infrastructure, forthcoming technology transitions will stimulate long-term growth,” said Baron Fung, Senior Research Director at Dell’Oro Group. “Most notably, the hyperscale cloud service providers will prioritize their investments toward accelerated systems for AI applications for both their public cloud platform and SaaS offerings.
“During the depths of the Covid-19 pandemic, spending on data center security solutions, such as high-end firewalls and web application firewalls, accelerated as enterprises put their digital transformation initiatives into high gear but now have been decelerating and are expected to do so for the next couple of years,” said Mauricio Sanchez, Sr. Director, Enterprise Security and Networking at Dell’Oro Group
“Given the sustained high level of backlog combined with the unexpectedly rapid improvement in supply, we have raised our revenue forecast for 2023 to show a high-single digit growth in this market. It is worth noting that this projection comes despite a tough comparison with 2022 during which the market experienced a robust double-digit growth,” said Sameh Boujelbene, Vice President at Dell’Oro Group.