“Coherent optics is becoming pervasive, spreading to all reaches of a network, and no longer confined to only DWDM systems,” stated Jimmy Yu, Vice President for Optical Transport market research at Dell’Oro Group.
“NVIDIA has benefited from the surge in demand for accelerated computing for generative AI applications, and has displaced Intel as the largest server component manufacturer since the beginning of this year,” said Baron Fung, Sr. Research Director at Dell’Oro Group.
“The DCPI market has blown past our already elevated expectations in 1H 2023. Sales growth has been notably strong, but what has been most surprising is the strength in new orders which pushed vendor backlogs to record highs at the end of 2Q 2023,” said Lucas Beran, Research Director at Dell’Oro Group.
“The bust of high-end data center class firewalls during the depths of the pandemic was followed by an accelerated pace of investment. We believe this trend is ending as service providers and large enterprises pause their investments,” said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell’Oro Group.
“Despite recent heightened investments towards AI infrastructure, hyperscale cloud capex has been decelerating as some of the major cloud service providers are overdue for a capex digestion cycle and have been optimizing their spending on general-purpose infrastructure,” said Baron Fung, Sr. Research Director at Dell’Oro Group.