Highlights:

  • Despite the pandemic impact on market growth, consumers installed more data center Ethernet switches in the first half of 2020.
  • Crehan Research accounted for about 12% CAGR year-over-year.
  • China and hyperscale cloud service suppliers were key contributors to the overall industrial growth.

As per the report published by Crehan Research Inc., consumers installed more data center Ethernet switches in the first half of 2020. Despite the coronavirus pandemic impact on the supply and demand chain, port shipment raised by about 12% year-over-year. Thus, resulting in a new record in 2020. Data center switches are developed for real-time visibility, scale, programmability, and industry-leading automation.

According to the report, China and hyperscale cloud service suppliers were key contributors to the overall industrial growth. The hyperscale cloud service supplier’s support manifested in the robust development of 100 gigabit Ethernet (GbE) and 25 GbE. The 100 GbE and 25 GbE are a selected data center networking architecture within this consumer segment. The combination of 100 GbE and 25GbE witnessed a 40% year-over-year rise, including many data center switches port shipments.

“This robust shipment growth, even in the face of COVID disruptions, is a reflection of the critical nature of data center networks in delivering needed services to businesses, homes, and governments,” commented Seamus Crehan, President of Crehan Research Inc. “The data center networking vendors have really risen to the challenge of helping their customers keep networks up and running, despite the myriad of obstacles presented during this pandemic.”

Apart from the above findings, there are some other significant results by Crehan’s data center switch report:

  • Nvidia, via its Mellanox acquisition, saw a doubling of its data center switch shipments, on the strength of its Spectrum-based 100 GbE switches.
  • Cisco’s revenue was stable for years, thus accounted for significant revenue for most data center switch shipments. With Cisco Services for data center networking, one will see faster time-to-value, improve operational efficiency, and reduce the risk of disruption.
  • Huawei and H3C accounted for the additional industry revenue in association with the strong data center growth in China.
  • Arista was a primary driver of the 100 GbE switch growth with significant revenue in the hyperscale cloud service provider sector.

Crehan commented, “Back in January 2017, we forecast that combined shipments of 100GbE and 25GbE would comprise over half of all data center Ethernet switch shipments by 2021.” Further, he added, “These recent results show that the transition to higher networking speeds that underpin modern data center architectures is happening even faster than expected.”

About Crehan Research Inc.

Crehan Research Inc. is a market research and consulting organization focused on storage networking, data center switch, and server. The company produces detailed reports on the data center networking markets. The company site is backed with rich insights and frameworks to provide maximum value. Blending solid quantitative research with deep qualitative research and insights are the founding tenets of Crehan Research’s value proposition.