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Revenue Outside of China Continues to Slide

REDWOOD CITY, Calif. – September 1st, 2020 – According to a recent report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, data center switch revenue showed a strong recovery in China during the second quarter, growing nearly 30 percent year-over-year (Y/Y). In the meantime, revenue outside of China declined at a steeper rate than in 1Q 2020.

“An early control of the COVID-19 pandemic in China, combined with government stimulus as well as a strong demand from Chinese Cloud Service Providers (SPs) boosted revenue growth in the region in the second quarter,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Additionally, this strong demand in China was not hindered by major supply issues as Chinese vendors were so far able to secure enough inventory to meet the demand in the quarter. Meanwhile, revenue outside of China was challenged by both supply as well as demand headwinds,” added Boujelbene.

Additional highlights from the 2Q 2020 Ethernet Switch – Data Center Report:

  • Arista, Cisco, and Juniper each recorded a double-digit Y/Y revenue decline in 2Q 2020.
  • Despite market weakness, demand remained strong from some large Cloud SPs such as Amazon, Microsoft, Alibaba and Tencent.
  • 400 Gbps shipment reached nearly a quarter million ports in 2Q 2020, driven mainly shipments to by Google and Amazon.

About the Report

The Dell’Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. (Software is addressed separately.) The report contains in-depth market and vendor-level information on manufacturers’ revenue; ports shipped; average selling prices for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1000 Mbps,10, 25, 40, 50, 100, 200, and 400 GE); and regional breakouts. To purchase these reports, please contact us by email at dgsales@delloro.com.

About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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