Global data center switch sales grew 15 percent in 4Q 2022, marking the fifth consecutive quarter of strong double-digit growth in the market, according to Dell’Oro Group.
This performance sent data center switch sales to a new record level for the quarter and full year 2022. Revenue growth in data center switch market was broad-based across all regions, except China which was down nearly 20 percent in the fourth quarter.
Cloud Service Providers (SPs) accounted for over 80 percent of the data center switch sales increase during the fourth quarter of 2022.
Arista Networks was the primary beneficiary of the revenue growth in data center switch business, capturing the majority of the increase, followed by Juniper and White Box vendors. Arista’s revenue share rose by almost seven points during the quarter, and the company’s market share surpassed 20 percent for the full year.
Full-year shipments of 200 Gbps and 400 Gbps reached almost 10 million ports, accounting for more than 10 percent of total shipments and almost 20 percent of revenues. This growth was largely driven by the adoption of these speeds by large Cloud SPs such as Google, Amazon, Microsoft, and Facebook; along with improvements in supply.
