“Due to macroeconomic uncertainties, and the lack of business confidence in North America and Europe, sales cycles are being elongated,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
The worldwide Service Provider Router market declined 3 percent year-over-year in 3Q 2019. Performance varied widely across the different regions of the world, and most notable was the Asia-Pacific region where a sharp drop in sales to India more than offset growth in other countries.
Global revenue for broadband access equipment market decreased 12 percent year-over-year (Y/Y), reaching $3.2 Billion. A 371 percent Y/Y increased in XGS-PON OLT revenue, and continued growth of XG-PON1 OLT ports CPE offset continued DSL declines.
Although spending from some Tier 1 Cloud Providers such as Google, Amazon and Microsoft accelerated during the quarter, softer demand across the broader market of Tier 2 Cloud Providers and some large enterprises suppressed market growth,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
“Shipments of 10 Gbps controllers and adapters were elevated compared to typical run-rates, and is not reflective of the slower growth of the Enterprise server market in 3Q 2019,” said Baron Fung, Director at Dell’Oro Group.