Global data center switch sales grew robustly in 1Q 2022, reaching the second-highest revenue ever captured in the market, just 2 percent below the record sales level achieved in the prior quarter. Arista, H3C, Juniper, Star-net Ruijie, and white box vendors captured most of the growth in the market, according to a recently published report from Dell’Oro Group. Arista grew the fastest and was able to gain more than two points of revenue share during the quarter.
“Despite ongoing supply challenges, the data center switch market continues to perform remarkably well across all major market segments: Cloud Service Providers (SPs), Telco SPs as well as Large Enterprises, with Cloud SPs contributing about 70 percent of the Y/Y increase in sales,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “What was also interesting during the quarter is that despite these supply issues which are impacting all components, all industries, all regions, and all manufacturers, some vendors were somehow able to outperform the market. We would like to note, however, that given elongated lead times that are now exceeding six months on several products, sales and vendors’ performance reported in 1Q 2022 are a reflection of orders, and in some cases, competitive displacements that happened in the second half of last year,” added Boujelbene.
Additional highlights from the 1Q 2022 Ethernet Switch – Data Center Report:
- 25 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps comprised nearly 70 percent of the shipments in 1Q 2022 and 80 percent of the revenues as the pandemic has been favoring the new speeds in terms of supply as well as demand.
- 400 Gbps shipments exceeded 800 K ports during the quarter, despite some deferred revenues at certain Cloud SPs. We expect the 400 Gbps ramp to continue to accelerate this year.
