Data center sector bucks tough market, says analyst

Pictured: Sameh Boujelbene, Senior Research Director at Dell’Oro


The global data center sector is defying market challenges to perform well, according to a recently published report from Dell’Oro Group.


The firm has reported that global data center switch sales grew robustly in the first quarter of 2022, reaching the second-highest revenue ever captured in the market, just 2% 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 Dell’Oro, which picked out Arista as the fastest grower, gaining 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 including Cloud Service Providers and telcos, as well as large enterprises,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “Cloud SPs contributed about 70% of the increase in sales. 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.”


The report additionally noted that 25 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps comprised nearly 70% of the shipments in 1Q 2022 and 80% of the revenues as the pandemic has been favoring the new speeds in terms of supply as well as demand. Also, 400 Gbps shipments exceeded 800K ports during the quarter, despite some deferred revenues at certain cloud SPs.

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