The telecom capex outlook remains favorable, even with the increased uncertainty due to the COVID-19 pandemic. Worldwide telecom capex – the sum of wireless and wireline telecom investments – is projected to grow at a one percent CAGR between 2019 and 2022.
Despite recent market uncertainties, we anticipate the Tier 1 Cloud service providers to increase data center capex as planned, primarily on servers, as the sector seeks to resume capacity expansion,” said Baron Fung, Research Director at Dell’Oro Group. “We project a steep decline in enterprise IT spending due to severe near-term supply and demand disruptions from COVID-19.
the worldwide Server and Storage System market is forecast for a modest 1 percent growth in 2020. After the Cloud slowed spending in 2019 to digest excess capacity, the segment is poised for a double-digit expansion this year.
the worldwide Campus Switch market grew 3 percent for full year 2019 but decelerated significantly in the second half. Most of the softness was driven by North America and Europe, while revenue in China grew at a double-digit rate in 2H 2019.
“In line with our expectations, the Top 4 U.S. Cloud Service Providers (SPs) posted mixed performance. Google and Amazon’s strong growth was partially offset by weakness from Facebook and Microsoft,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
Power over Ethernet technology has evolved to be a key part of wireless LAN architectures, smart buildings and enterprise networks
Dell’Oro’s inaugural SD-WAN market share report indicated a 64% growth for the technology in 2019 – just surpassing $1 billion. “While 2019 was breakout year for SD-WAN adoption, it is still early days for market penetration,” said Shin Umeda, vice president at Dell’Oro Group.
“DOCSIS 4.0 is critical in setting the roadmap for all the technologies, and obviously for all of the components suppliers and system vendors to start developing to,” said Jeff Heynen, senior research director at Dell’Oro Group.
5G networks will supercharge the convergence of IT and operational technology (OT) networks and teams, and ultimately this is a positive development. Among the benefits: industrial machines, sensors, and other connected devices can learn on the fly using artificial intelligence (AI) and machine learning.