Cloud Service Provider Switch Sales Slow as They Shift Focus to AI and Digest Existing Capacity, According to Dell'Oro Group
- S&P 500, Dow close slightly up; Nvidia gains after the bell
- Nvidia guidance tops estimates as AI-led chip demand continues; shares jump
- More signs inflation is slowing before pivot to cuts as upside risks emerge: Fed
- Rivian production guidance falls short; shares slump
- Yields rise on Fed fears of cutting rates too soon, stocks mixed
Robust Enterprise Market Enables Overall Market Growth
"Data center switch sales have maintained robust performance, reaching near-record levels in 3Q 2023," said Sameh Boujelbene, Vice President at Dell'Oro Group. "However, despite such a strong level of sales, the market growth started to exhibit signs of slowdown compared to previous quarters, particularly evident in the Cloud SP segment where spending remained flat compared to the year-ago period. Concurrently, spending from large enterprises surged by strong double-digits. While
Additional highlights from the 3Q 2023 Ethernet Switch – Data Center Report:
- For the second consecutive quarter, Arista, Cisco, and HPE captured most of the revenue growth and were able to gain revenue share during the quarter.
- Geographically, sales growth was broad-based across all regions, except
Chinawhich declined 12 percent.
- Further fueled by AI applications, shipments of 200 Gbps, 400 Gbps, and 800 Gbps switches constituted approximately 25 percent of the revenue and over 20 percent of the total shipments. Although Amazon, Google, Meta, and Microsoft continue to drive the majority of deployments, we observed an increasing number of shipments directed toward Tier 2/3 Cloud Service Providers and Large Enterprises.
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 (1, 10, 25, 40, 50, 100, 200, 400, ≥800 Gbps); revenue split by market segments as well as regional breakouts. To purchase these reports, please contact us by email at [email protected].
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunication, security, enterprise networks, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/cloud-service-provider-switch-sales-slow-as-they-shift-focus-to-ai-and-digest-existing-capacity-according-to-delloro-group-302002689.html
SOURCE Dell'Oro Group
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- SPECIAL REPORT: U.S. COMMERCIAL FORECLOSURES INCREASE IN JANUARY 2024
- Slovenian SunContract Kicks Off World's First Solar Panel NFTs at Major European Blockchain Conference in Bucharest
- Ensurge Micropower ASA - Disclosure of Large Shareholdings
Create E-mail Alert Related CategoriesPRNewswire, Press Releases
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!