“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.
“We have been predicting continued strong double-digit growth in the market in 1H 2023 but the 2Q 2023 results crushed our expectations. The substantial expansion was primarily propelled by an increase in both port shipments and prices,” said Sameh Boujelbene, Vice President at Dell’Oro Group.
“Even though sales cycles are longer and additional budget scrutiny is the norm in the current macroeconomic environment, we were pleasantly surprised with the strength of the SASE market,” said Mauricio Sanchez, Sr. Research Director, Enterprise Networking and Security at Dell’Oro Group.