Enterprise networking revenue is experiencing significant growth, though rising costs and component shortages are creating a complex landscape for businesses, with further coverage provided by SDx Central.
Worldwide enterprise networking revenue grew 15% year over year, driven by an artificial intelligence infrastructure boom and a focus on security upgrades. Mauricio Sanchez, a senior director at Dell’Oro Group, noted that while sectors like campus switching and wireless local area networks have seen double-digit growth, the rapid expansion of AI is tightening component supplies. This scarcity, particularly regarding memory chips, has forced vendors to raise prices. Some 93% of fixed-wireless access vendors report being affected by these inflationary costs. Consequently, average selling prices for campus switches have risen 19%. These financial pressures may lead companies to extend product lifecycles or delay infrastructure refreshes. Beyond AI, businesses are prioritizing security modernization to address vulnerability exposure, which is fueling interest in software-defined wide area networks and secure access service edge solutions. Despite these shifts, many organizations continue to favor hybrid or multi-vendor architectures to maintain operational flexibility and meet specific sovereignty requirements as they navigate these supply chain constraints.
Source: SDx Central
