Dell'Oro says AI security fears may speed campus switch refreshes
Dell'Oro Group says unsupported campus Ethernet switches and AI-related security concerns are likely to drive more enterprises to replace older gear.
Dell'Oro Group said Aug. 6 that unsupported campus Ethernet switches and rising AI-related security concerns are expected to drive more replacement spending, with higher-speed ports projected to account for more than half of campus switch revenues by 2029.
Campus switches sit outside the data center and connect users and devices to local networks. Dell'Oro said organizations are replacing older equipment while preparing networks for faster connections and more power-hungry devices.
In its Campus Ethernet Switch 5-Year July 2026 Forecast Report, Dell'Oro said demand is being pushed by the need to refresh unsupported equipment. The firm also said threats exposed by AI models such as Mythos will accelerate replacement urgency.
Siân Morgan, senior director at Dell'Oro Group, said enterprises are focusing on security audits and IT equipment replacement after reports of rogue AI agents hacking firms heightened breach fears. Morgan also said replacing older switches makes support for multi-gig interfaces and more Power over Ethernet, or PoE, critical.
Dell'Oro said the report includes manufacturer revenue, average selling prices, and port and unit shipments by speed, with breakouts covering 100 Mbps through 400 Gbps and regional views. The firm describes itself as a market research company focused on telecommunications, security, enterprise networks, and data center infrastructure.
Dell'Oro forecast that sales of higher-speed ports from 2.5 Gbps to 400 Gbps will make up over half of campus switch revenues by 2029. It also said the campus switch market will no longer be dominated by 1 Gbps port sales.
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