According to recently published research from Dell’Oro Group, 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," according to a press release issued by the industry research firm.
“Despite ongoing supply challenges, the data center switch market continues to perform remarkably well across all major market segments [including] cloud service providers (SPs) [and] telco SPs, as well as large enterprises, with cloud SPs contributing about 70 percent of the Y/Y increase in sales,” revealed Sameh Boujelbene, senior research director at Dell’Oro Group.
Per Dell'Oro, for 1Q 2022, Arista, H3C, Juniper, Star-net Ruijie, and white box vendors captured most of the growth in the market. The new report notes that Arista grew the fastest and was able to gain more than two points of revenue share during the quarter.
Dell'Oro's Boujelbene added, “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."
Dell'Oro's 1Q 2022 Ethernet Switch – Data Center report also notes that 25 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps ports 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."
The researcher noted that 400 Gbps shipments exceeded 800K ports during the quarter, "despite some deferred revenues at certain cloud SPs."
"We expect the 400 Gbps ramp to continue to accelerate this year," concluded Boujelbene.