Industry News
Will the Ethernet data center switch market slow down in 2024?
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Author : JIUZHOU
Update time : 2024-01-19 10:15:35
A research firm predicts that the global Ethernet data center switch market will grow slower in 2024 compared to 2023.
The research firm stated that factors such as sales backlog and budget cuts will affect sales in 2024. These factors are either macroeconomic conditions. Or the growing focus on artificial intelligence.
We will release the report in December 2023.
According to data from the market research company. This follows seven consecutive quarters of double-digit growth. Global data center switch sales revenue slowed to 7% in the third quarter of 2023.
We are equally noteworthy. Spending by cloud service providers was flat for the first time in more than three years. No contribution to market growth.
More money for AI could affect funding for regular server connections in traditional networks.
Cloud providers are spending less on traditional networks and more on AI-enabled infrastructure for general-purpose servers.
Over the next five years, investment in artificial intelligence will drive the development of the data center switch market.
The market research firm reported in July 2023
In 2027, 20% of Ethernet switch ports in data centers will connect to faster servers for AI tasks.
The company expects total sales of the data center switch market to exceed $100 billion by 2027.
The research firm predicts that major cloud providers will use 800G technology more in 2024.
The research firm stated that factors such as sales backlog and budget cuts will affect sales in 2024. These factors are either macroeconomic conditions. Or the growing focus on artificial intelligence.
We will release the report in December 2023.
According to data from the market research company. This follows seven consecutive quarters of double-digit growth. Global data center switch sales revenue slowed to 7% in the third quarter of 2023.
We are equally noteworthy. Spending by cloud service providers was flat for the first time in more than three years. No contribution to market growth.
More money for AI could affect funding for regular server connections in traditional networks.
Cloud providers are spending less on traditional networks and more on AI-enabled infrastructure for general-purpose servers.
Over the next five years, investment in artificial intelligence will drive the development of the data center switch market.
The market research firm reported in July 2023
In 2027, 20% of Ethernet switch ports in data centers will connect to faster servers for AI tasks.
The company expects total sales of the data center switch market to exceed $100 billion by 2027.
The research firm predicts that major cloud providers will use 800G technology more in 2024.
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