Data center switch sales grew in excess of 20% in 2Q

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.

CT Bureau