Cloud service providers push data center switching revenue to record high, according to Dell’Oro Group

Date: Mon, 02/12/2018 - 18:03 Source: Dell’Oro Group

Arista, Cisco, H3C and Huawei captured most of the year-over-year growth
Cloud service providers push data center switching revenue to record high, according to Dell’Oro Group

Sameh Boujelbene, Senior Director at Dell’Oro Group

Image credited to 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, new switching and routing use cases from Cloud Service Providers (SP) helped push Ethernet Switch – Data Center market revenue to a record high, growing 12 percent year-over-year during the third quarter of 2017. Arista, Cisco, H3C, and Huawei captured most of the year-over-year growth.

“While we saw a pause in spending at some of the large Hyperscale accounts, demand from Cloud SPs remained strong during the quarter,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Furthermore, the use of switch systems in new emerging routing use cases at some of the large Cloud and Telco SPs is expanding the total addressable market for Ethernet switches. While we are still in the early stages of this transition, we will be closely monitoring this trend from a vendor perspective as well as from a use case perspective,” continued Boujelbene.

Additional highlights from the 3Q17 Ethernet Switch – Data Center Report:
• 40 GE revenue dropped to about half of the 100 GE revenue.
• Arista’s sales outside of U.S. more than doubled year-over-year.
• In line with our expectations, Cisco’s data center switching sales saw some signs for recovery in China.

 

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