Staggering 2Q Data Center Switch Sales Drive Market to Record Levels for the Quarter and First Half of the Year, According to Dell’Oro Group

Written by Sameh Boujelbene

 

Arista Networks and White Box Vendors Gain Share

REDWOOD CITY, Calif. – September 7, 2022 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center industries, global Data Center Switch sales grew in excess of 20 percent in 2Q 2022, reaching an all-time high for the quarter as well as for the first half of the year. The growth was broad-based across a number of vendors. However, only Arista and white box vendors were able to gain revenue share during the quarter.

“We have been forecasting a double-digit growth in the market; driven by ongoing strong customer demand, balanced by supply challenges,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “However, vendors’ ability to work through these supply challenges and deliver the level of shipment witnessed during the quarter beat our expectations, although it came at higher logistics and component costs. We expect supply constraints to persist through the remainder of the year and to continue to shape the market as well as vendors’ performance,” added Boujelbene.

Additional highlights from the 2Q 2022 Ethernet Switch – Data Center Report:

  • Double-digit growth was recorded across all major customer segments: Cloud Service Providers (SPs), Telco SPs as well as Large Enterprises. Each one of these segments reached a record revenue level for the quarter and the first half of the year.
  • To our surprise, the robust growth was broad-based across all regions, including China which has experienced several weeks of lockdown in multiple cities during the quarter.
  • 200 Gbps and 400 Gbps approached 2 M ports and comprised more than 10 percent of the shipments and nearly 20 percent of the revenues during the quarter. As anticipated, this growth was driven by an accelerated adoption from large Cloud SPs as well as some deferred revenues that got recognized during the quarter.

About the Report

The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1,10, 25, 40, 50, 100, 200,  400, ≥800 Gbps); revenue split by market segments as well as regional breakouts. To purchase these reports, please contact us by email at dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunication, enterprise networks, data center infrastructure, and network security markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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About the Author

Sameh Boujelbene

Vice President

Sameh Boujelbene joined Dell’Oro Group in 2011 and is responsible for the Ethernet Data Center Switch market research. To ensure the Data Center Switch market research captured the impact from AI and ML workloads, she authored an Advanced Research Report

Sameh Boujelbene

Vice President

Sameh Boujelbene joined Dell’Oro Group in 2011 and is responsible for the Ethernet Data Center Switch market research. To ensure the Data Center Switch market research captured the impact from AI and ML workloads, she authored an Advanced Research Report

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