White box switch sales pause

A pair of market research reports suggest that the drive to replace conventional data center switches with more generic white box switch alternatives took a pause in the second quarter of 2015. However, neither IHS (NYSE: IHS) nor Dell'Oro Group suggest the trend is over.

Stephen Hardy
Sep 22nd, 2015

A pair of market research reports suggest that the drive to replace conventional data center switches with more generic white box switch alternatives took a pause in the second quarter of 2015. However, neither IHS (NYSE: IHS) nor Dell'Oro Group suggest the trend is over.

Dell'Oro states in its most recent "Ethernet Switch – Data Center Quarterly Report" that white box switch vendors saw their sales decline in the second quarter while other vendors enjoyed success.

"The quarter was highlighted by strong growth from Chinese vendors, such as Huawei, and headwinds among enterprises adopting 10GbE for server access and 40GbE in the spine/aggregation layer," according to Alan Weckel, vice president of Ethernet Switch – Data Center market research at Dell'Oro.

"Looking forward to the second half of 2015 and early 2016, the Ethernet Switch – Data Center market is about to undergo the largest upgrade the market has ever seen as cloud providers begin to deploy next-generation silicon solutions from Broadcom, Cavium, and Mellanox. We expect record-setting port shipments of 100GbE as the industry moves from 10GbE SerDes-based silicon to 25GbE SerDes-based silicon. The question is to what degree will this change impact white box vendors," Weckel added.

Meanwhile, IHS says in its new "IHS Infonetics Ethernet Switches report that global Ethernet switch sales grew 9% sequentially in the second quarter of 2015 to hit $5.6 billion. But, again, white box switch vendors didn't benefit. However, IHS analysts were more overtly bullish on white box sales going forward.

"We did see muted demand for white box switch solutions, as web-scale data center operators await the release of 25/100GbE solutions later this year, and once these become available, we expect the white box segment to become a key growth driver again," said Matthias Machowinski, research director for enterprise networks and video at IHS.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.


More in Market Research
Cloud Computing 4246668 1920
Market Research
2019 cloud data center capex to decline from 2018: Dell’Oro

Dell’Oro Group has launched coverage of cloud data center capital expenditures (capex).

Stephen Hardy
Aug 20th, 2019
Arrows 2899888 1920
Market Research
100G Ethernet switch ports to peak in 2020 as 400G ramps: Dell’Oro Group

Significant deployment of 400G Ethernet switch ports awaits the availability of high-volume, low-cost optics, says a Dell'Oro analyst.

Stephen Hardy
Aug 6th, 2019
Usd 2874026 1280
Market Research
Global telco capex shrinks about 2.5% in 1Q19: MTN Consulting

Telecommunications network operators worldwide spent $70 billion on capital expenditures (capex) in the first quarter of this year, says MTN Consulting.

Stephen Hardy
Jul 29th, 2019
Chart 1545734 1920
Market Research
10G PON to drive PON sales to $7.3 billion by 2023: Dell’Oro

“Fiber deployments continue to expand around the world, thanks to increased competition and an improved funding environment for both public and private networks,” commented Jeff Heynen, research director at Dell’Oro Group.

Stephen Hardy
Jul 25th, 2019
While Huawei continues to dominate among suppliers to traditional telcos, Ciena is doing very well selling to cloud and colo network operators, says Cignal AI.
Market Research
Sales of optical network systems to North American cloud and colo providers jumps 50%: Cignal AI

The market research firm notes in its newly released “Optical Customer Markets Report” that other customer segments should be expected to increase purchases this year as well.

Stephen Hardy
Jul 25th, 2019
I Stock 000001759899 Medium
Market Research
White-box data center Ethernet switch market mainly three customers: Crehan Research

If you’re wondering who is buying white-box data center Ethernet switches, you don’t have to look much farther than Amazon, Google, and Facebook, according to Crehan Research Inc.

Stephen Hardy
Jul 23rd, 2019
Web 3219281 1920
Market Research
Coherent 200G+ DWDM grows in next five years while 100G declines: Dell’Oro Group

Overall coherent DWDM revenue will reach $16 billion by 2023, the market research firm predicts.

Stephen Hardy
Jul 22nd, 2019
Sales of optics to the cloud megadatacenter operators. After a dip this year, growth should resume in 2020, LightCounting predicts.
Market Research
LightCounting: Hang on, module vendors, the data center companies will start buying again

Growth should begin again in 2020 and continue for at least several more years to come. Of course, that implies technology suppliers have to get through 2019 first.

Stephen Hardy
Jul 19th, 2019
Compact modular optical platforms are becoming an increasingly large part of total optical systems sales in North America -- a trend Cignal AI expect will continue.
Market Research
Sales of compact modular optical systems grow as applications increase: Cignal AI

The market research firm states in its latest “Optical Applications Report” that compact modular hardware sales are on pace to exceed $1 billion by the end of 2019.

Stephen Hardy
Jul 16th, 2019
L Wlightcounting062019
Market Research
How concerning is the Q1 2019 decline in cloud companies’ spending?

The question the market research company explores in its June 2019 “Quarterly Market Update” report is whether the slow start to the year is an aberration or the start of a troubling trend.

Stephen Hardy
Jun 20th, 2019