2Q16 Ethernet switch sales exceed $6 billion: Dell'Oro

Revenues within the Ethernet Switch – Layer 2+3 market exceed $6 billion in 2Q16, an increase of 6% year-on-year, according to a new report from Dell'Oro Group. A rebound in campus switching, a record quarter in China, and strong cloud growth provided the catalysts for the strong results. Meanwhile, the market research firm says Arista and Dell enjoyed record sales during the quarter.

Revenues within the Ethernet Switch – Layer 2+3 market exceed $6 billion in 2Q16, an increase of 6% year-on-year, according to a new report from Dell'Oro Group. A rebound in campus switching, a record quarter in China, and strong cloud growth provided the catalysts for the strong results. Meanwhile, the market research firm says Arista and Dell enjoyed record sales during the quarter.

"2Q16 was a strong quarter for almost all vendors and segments within the Ethernet switch market," said Alan Weckel, vice president at Dell'Oro Group. "Record sales into China and a record quarter for sales to the cloud helped drive growth. While China and the cloud remain seasonal in nature, both are continuing to grow as a percent of the market and drive many of the requirements for new products.

"In the data center, we can see the cloud's influence in early shipments of 100 Gbps," added Weckel.

Despite the revenue records from Arista and Dell, Cisco remained the clear market leader with 55% share in 2Q16, according to the report. Hewlett Packard Enterprise was a distant second at 9%, followed by Huawei at 7% and H3C and Arista both at 4%.

The Dell'Oro Group "Ethernet Switch – Layer 2+3 Quarterly Report" provides an overview of the Ethernet switch industry with tables covering manufacturers' revenue, average selling prices, and port/unit shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 40 Gigabit Ethernet, 100 Gigabit Ethernet) for Layers 2+3 (both managed and unmanaged).

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