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Dell’Oro Group: Data Center Switch Sales Soar to Record High, Despite Ongoing Supply Challenges

December 2021 by Dell’Oro Group

According to a recent report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, global Data Center Switch revenue was up 11 percent year-over-year in 3Q 2021, reaching an all-time high. Arista and white box switch suppliers captured most of the growth and gained more than one point of revenue share each.

“We have been predicting the strong demand in the market to persist for various reasons explained in our report, but what surprised us is the level of sales that the vendors were able to fulfill during the quarter, despite ongoing supply challenges,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “What was clear though is that certain vendors, for instance, Arista and certainly white box suppliers have been so far able to better navigate the supply issues and take advantage of the situation to gain share, ” added Boujelbene.

Additional highlights from the 3Q 2021 Ethernet Switch – Data Center Report:
• 400 Gbps cumulative shipments eclipsed 3 Million ports, the vast majority of which are still driven by Google and Amazon.
• Microsoft initiated 400 Gbps deployments in 3Q 2021, the vast majority of which were reported under deferred revenue due to pending qualification cycle.
• Huawei, Star-Net Ruijie, and Juniper Networks recorded double-digit revenue growth.

About the Report

The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1000 Mbps,10, 25, 40, 50, 100, 200, and 400 Gbps); revenue split by market segments as well as regional breakouts.




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