Dell’Oro Group: Front-end networks will drive data center switch sales

A new report from Dell’Oro Group predicts that Ethernet data center switches deployed in front-end networks will generate more than $100 billion in sales over the next five years.

The research, presented in the Ethernet Switch – Data Center 5-Year Forecast Report, indicates that 51.2 and 102.4 Tbps network chips will enable the deployment of nearly 100 million shipments of 800 Gbps and 1.6 Tbps switch ports in front-end networks By 2028.

Dell’Oro Group vice president Sameh Boujelbene explained that although the near-term focus of cloud service providers is on AI infrastructure buildouts, or back-end networks, investments in front end networks will likely accelerate in the coming years.

“Despite exponential growth opportunities in back-end networks, front-end networks are expected to continue driving the bulk of Ethernet data center switch sales over the next few years,” said Boujelbene in a press release. “Maintaining robust spending in front-end networks remains, therefore, essential to boosting the performance of major Ethernet switch suppliers.”

Boujelbene further reported that the adoption of higher speeds may be rapid.

“While back-end network will be the first to migrate to higher speed,” she said, “we anticipate 51.2 Tbps-based switch deployment in front-end network to debut in 2024 and to enable a swift adoption of 800 Gbps. 102.4 Tbps-based switch deployments are expected to follow in 2025/2026 time frame and enable a second wave of 800 Gbps and the initial wave of 1.6 Tbps deployment.”

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