Good News!2022 Q1 Data Center Switch Sales Increased by 16%

2022-06-09 10:00:00

According to a recent report by Dell 'Oro Group, a market research and analysis firm for the telecommunications, networking and data center IT industry, sales of global data center switches grew strongly by 16% in the first quarter of 2022, setting a record for the market's second-highest revenue level ever and just 2% below the record sales level in the previous quarter.

The report shows that Arista Networks, New H3C, Juniper Networks, StarNet, Ruijie and white box switching vendors contributed most of the growth of this market. Arista Networks grew the fastest, growing more than 2% points in the quarter.

Sameh Boujelbene, Senior Research Director at Dell 'Oro Group said, 'Despite continued supply challenges, the data center switch market continues to excel across all major market segments, including cloud service providers (SPs), telecom service providers (Telco SPs) and large enterprises. Among them, cloud service providers contributed about 70% of the year-on-year sales growth in the quarter.'

'Although supply issues affect all parts, all industries, all regions and all manufacturers, some suppliers are still able to outperform the market in their own way. However, we would like to point out that, given that the lead times of some products have been extended by more than 6 months, the sales and supplier performance in the first quarter of 2022 reflects the slowing of orders, in part the competitive substitution that occurred in the second half of last year.'

Other highlights of the Q1 2022 Ethernet Switches - Data Center Report

Nearly 70% of the switches shipped in the quarter were 25Gbps, 100Gbps, 200Gbps, or 400Gbps. Such conversions also contributed 80% of revenue for the quarter. The COVID-19 pandemic has accelerated the flow of supply and demand for these products, with significantly increased customer acceptance, with more than 800,000 shipments of 400 Gbps interfaces. Dell 'Oro expects shipments of 400G interfaces to accelerate further this year.

400 Gbps shipments exceeded 800K ports during the quarter, although some cloud service providers generated some deferred revenue. Dell 'Oro Group expects 400 Gbps growth to continue to accelerate this year.

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