Dell’Oro Group: AI-related spending drove Q4 data center switch sales

Dell’Oro Group’s recently released 4Q 2024 Ethernet Switch–Data Center Report revealed that Ethernet data center switch sales saw record-breaking double-digit revenue growth during the last quarter of 2024. The report showed that 200 Gbps, 400 Gbps, and 800 Gbps ports had shipment growth during the quarter, and Celestica captured the highest share gain. Along with Celestica, Arista, Nvidia, and Ruijie had the majority of the quarter’s revenue growth.

Sameh Boujelbene, Vice President at Dell’Oro Group, reported that while most of the sales increases were attributable to AI-related investments, the traditional front-end networks also showed signs of recovery in the quarter.

“The recovery in front-end networks began with Cloud Service Providers in early 2024, but 4Q 2024 marked the first quarter where we saw a return to growth in spending from large enterprises, signaling the end of the digestion cycle,” said Boujelbene in a press release.

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