According to a recent Dell’Oro Group report, the global Datacentre Switch sales grew robustly in Q1 2022, reaching the second-highest revenue ever captured in the market, just 2% below the record sales-level achieved in the prior quarter.
The report takes a detailed view of the market, including Ethernet switches for server access, server aggregation, and datacentre core (software addressed separately).
“Despite ongoing supply challenges, the datacentre 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% 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. It should be noted however, that since elongated lead-times now exceed six months on several products, sales and vendors’ performance reported in Q1 2022 are a reflection of orders, and in some cases, competitive displacements that happened in the second half of 2021.
Highlights from the report:
- 25 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps comprised nearly 70% of the shipments in Q1 2022 and 80% of the revenues as COVID has favoured the new speeds in both supply and demand.
- 400 Gbps shipments exceeded 800,000 ports during the quarter, despite some deferred revenues at certain Cloud SPs. Notably, 400 Gbps shipments are expected to continue to accelerate this year.