Cloud service provider switch sales slow as focus shifts to AI – Dell'Oro Group

For the second consecutive quarter, Arista, Cisco, and HPE captured most of the revenue growth and were able to gain revenue share during the quarter.

Geographically, sales growth was broad-based across all regions, except China which declined 12 percent.

Further fueled by AI applications, shipments of 200 Gbps, 400 Gbps, and 800 Gbps switches constituted approximately 25 percent of the revenue and over 20 percent of the total shipments. Although Amazon, Google, Meta and Microsoft continue to drive the majority of deployments, we observed an increasing number of shipments directed toward Tier 2/3 Cloud Service Providers and Large Enterprises.