Even with some decoupling taking place between capex and equipment revenue growth trends in the first half, we expect the relationship to remain significant going forward,” said Stefan Pongratz, Vice President with the Dell’Oro Group.
“As enterprises pivot towards becoming cloud-first and mobile-friendly, they are running into the structural deficiencies of the hub-and-spoke model and need alternatives,” said Mauricio Sanchez, Director at Dell’Oro Group.
“We are in the midst of extensive digital transformation, accelerated by the global pandemic, where the limits of power and cooling infrastructure are being tested,” said Lucas Beran, Principal Analyst with Dell’Oro Group.
“The Cloud service providers’ digestion cycle has persisted longer than predicted due to the continued market uncertainty,” said Baron Fung, Research Director at Dell’Oro Group. “We anticipate another Cloud expansion cycle to commence starting in the second half of this year.
“We see a growing comfort level and willingness among enterprises to embrace cloud-based network security for their users,” said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances.