“The markdown is more driven by the challenges of converting these initial trials to commercial deployments than a sign that demand is subsiding,” said Stefan Pongratz, Vice President at Dell’Oro Group. “In fact, a string of indicators suggest private wireless activity is firming up not just in China but also in other regions,” continued Pongratz.
“Although manufacturers launched Wi-Fi 6E products in mid-2021, products are either not available, or they are in very limited supply. Supply constraints have prompted manufacturers to focus on enabling the availability of popular models by re-designing these models with components that are more readily available,” said Tam Dell’Oro, Founder, CEO and Wireless LAN Analyst.
“In line with our expectations, the data center switch market has not only been resilient to the pandemic, but has actually benefited from it,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “As digital transformation initiatives have been accelerated by the pandemic, we are seeing strong growth in the Cloud and at the edge.
“Since the arrival of the first network security appliances in the 1980s, the Network Security market has been dominated by an assortment of purpose-built boxes, but we see a seismic shift taking place,” said Mauricio Sanchez, Research Director, Network Security at Dell’Oro Group.
“Innovations in Ethernet adapters such as Smart NICs and 100 Gbps and higher-speed ports are resulting in revenue growth opportunities,” said Baron Fung, Research Director at Dell’Oro Group. “By 2026, we predict that more than half of the servers shipped to the hyperscaler cloud service providers will be equipped with Smart NICs, with many of those server ports connected to the network at 100 Gbps or higher speeds.