Arista, Cisco, Juniper, White Box, Market Shares Differ Materially Between the Cloud Market and the Enterprise Market
Incline Village, Nevada – March 1, 2024 – According to a newly released report issued by founding analysts of 650 Group, there are unique differences between Ethernet switches deployed into clouds and enterprise data centers.
Since 2010, the Ethernet switch market began fundamentally changing when vendors began to engineer purpose-built switches for the data center and the campus markets, instead of using just one platform for both markets. For Cisco, this was the creation of its Nexus product family, and similarly Juniper’s QFX family. Arista and a category of white box switch companies entered the market, leveraging Broadcom’s merchant silicon ASICs. 650 Group’s new Data Center Ethernet Switch report reflects the fact that the data center Ethernet switch market has further split into two unique areas, cloud and enterprise, and also demonstrates the idea that the needs of the cloud and hyperscalers are very different than those of enterprise buyers.
“Today, there is demand for different kinds of data center Ethernet switches – one set for enterprises and another for cloud. 2023 highlighted the big difference in markets with the cloud segment driven by hyperscaler demand and the early stages of AI/ML build outs,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “Cloud vendors now use specialized switch semiconductors unique to the cloud segment. This is why we see a large push towards 51.2 Tbps ASICs in the next 12-18 months. Switches built for the cloud now have unique specifications compared to those built for the enterprise, and the market share that vendors have in each market differs between enterprise and cloud. Today, there is very little in common between market share in each segment. AI/ML adds another layer of unique specifications as customers deploy different Ethernet and InfiniBand networks to support AI/ML clusters.”
650 Group’s Quarterly Ethernet Switch – Data Center – Cloud report includes segmentation on a regional and worldwide basis and provides market data for the China and non-China markets. The report contains the difference in market shares in China and its three leading vendors: H3C, Huawei, and Ruijie. The report also focuses on the non-China market and its four prominent vendors: Arista, Cisco, Dell, and Juniper. In addition, various White box vendors–Accton, Celestica, and Inventec–drive significant ports each quarter. Separately, 650 Group also tracks the AI/ML networking market, including segmentation for InfiniBand, transceivers, and NICs deployed in AI/ML.
About the Ethernet Switch – Data Center – Cloud Quarterly Report
The Ethernet Switch – Data Center – Cloud Quarterly Report offers a market assessment of vendor performance and market share in the enterprise portion of the data center switching market. The report covers Modular, Fixed Managed, White Box, Disaggregation, and other segmentation and the following port speeds: 1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, 100 Gbps, 200 Gbps, 400 Gbps, 800 Gbps, 1.6 Tbps, and 3.2 Tbps. 650 Group publishes additional segment-specific reports in Data Center Switching. For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com.
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center, and cloud markets. Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies. TO learn more, visit www.650group.com
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