Datacenter switching surged everywhere except Europe last quarter

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Update time : 2022-12-05 09:24:00
Improving supply chains coupled with unrelenting demand from cloud service providers kept the datacenter switching market on a positive trajectory in Q3.

Datacenter switch revenues surged 20 percent year over year in the third quarter, the highest rate so far this year, a Dell'Oro Group report published on Friday found. That is, with the exception of Europe, the Middle East, and Africa (EMEA). 

While North America, China, and the Asia Pacific markets all plotted double-digit growth in the datacenter switching arena, EMEA saw switching revenues decline during the quarter. Much of this was the result of ongoing supply chain constraints in the region coupled with slowing demand in the face of strong macroeconomic headwinds and surging energy prices, Dell'Oro analyst Sameh Boujelbene told The Register.

Perhaps unsurprisingly, cloud and hyperscale customers drove the lion's share of growth in the datacenter switching market, pushing adoption of 200Gbps and 400Gbps networking equipment to nearly two million units. And despite only accounting for 10 percent of global shipments, 200Gbps and faster switches generated 20 percent of quarterly revenues in Q3, the report found.

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