Higher Speeds Drive Data Center Switch Market to Nearly Double-Digit CAGR, According to Dell’Oro Group
|“In line with our expectations, the data center switch market has not only been resilient to the pandemic, but has actually benefited from it,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “As digital transformation initiatives have been accelerated by the pandemic, we are seeing strong growth in the Cloud and at the edge.
SaaS- and Virtual-Based Network Security Revenue to Eclipse Hardware by 2026, According to Dell’Oro Group
|Smart NIC Revenues Projected to Reach $1.6 Billion by 2026, According to Dell’Oro Group
|“Innovations in Ethernet adapters such as Smart NICs and 100 Gbps and higher-speed ports are resulting in revenue growth opportunities,” said Baron Fung, Research Director at Dell’Oro Group. “By 2026, we predict that more than half of the servers shipped to the hyperscaler cloud service providers will be equipped with Smart NICs, with many of those server ports connected to the network at 100 Gbps or higher speeds.
Campus Switch Market Returns to Growth Quicker Than Expected, $100B between 2021 and 2026, According to Dell’Oro Group
|“When the pandemic first hit the market and spurred the work-from-home phenomenon, many people thought that campus switch sales might collapse and never recover. Yet our initial forecast issued at the beginning of the pandemic portrayed a more optimistic view of the market and projected that sales should go back to growth and eclipse their pre-pandemic level in 2022. The pace of recovery, however, has exceeded our expectations,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
Global Data Center Capex to Reach $350 Billion by 2026, According to Dell’Oro Group
|Our outlook for spending on data center infrastructure capex is optimistic, with a five-year projected growth of 10 percent,” said Baron Fung, Research Director at Dell’Oro Group. “The hyperscale cloud service providers will account for an increasing portion of the total market, as they invest to expand their network of data centers, increase cloud capacity, and deploy AI infrastructure to enable new applications such as the metaverse.
