The growth of controller and adapter shipments, for 10 Gbps ports, in particular, outpaced the growth of server units by a considerable amount for the past two quarters,” said Baron Fung, Research Director at Dell’Oro Group. “System vendors have been increasing their inventory of Intel processors, a portion of which have integrated Ethernet ports, and discreted Ethernet controllers in light of on-going disruptions from the global pandemic.
the worldwide Data Center Switch market recorded its first decline in nine years, dropping 9 percent year-over-year in the first quarter. 1Q 2020 revenue level was also the lowest in three years. The softness was broad-based across all major branded vendors, except Juniper Networks and white box vendors. Revenue from white box vendors was propelled mainly by strong demand from Google and Amazon.
Demand for SD-WAN held up well in the first quarter, but supply chain disruptions induced by the COVID-19 pandemic caused a sharper deceleration in vendor revenue growth,” said Shin Umeda, Vice President at Dell’Oro Group. “We still expect the SD-WAN market to grow by double-digits this year, but with so much macroeconomic uncertainty, strong performance won’t be a shoo-in for all vendors,” added Umeda.
“As the pandemic spread through Asia, Europe, then North and South America, enterprises turned to cloud-managed capable network equipment to get thousands, or tens of thousands of remote workers connected to the network. The amount of interest in being able to perform deployment and management tasks remotely shot up,” said Tam Dell’Oro, Founder, CEO, and Wireless LAN Analyst at Dell’Oro Group.
Our outlook has become more positive, especially since the Chinese service providers accelerated their plans for 5G Core deployments,” stated David Bolan, Senior Analyst at Dell’Oro Group. “China Mobile and China Unicom have completed their 5G Core tenders, and plan to launch 5G service early in 3Q20.
Some operators are definitely factoring in a range of percentage of workers who do not return to their office this year and instead continue to work from home or work from micro-offices with smaller groups. They are using these models to help plan for new equipment deployments, node splits, and where they might need to upgrade CPE in bulk to support sustained higher bandwidth requirements
The COVID-19 pandemic has certainly turned our world upside-down, as it represents a human tragedy affecting millions around the world. There have been countless acts of selflessness on a global scale as we all work
To meet a need for faster high-end Ethernet, 800GbE has become a formal specification, but the reality on the ground is that 400GbE shipments are just ramping up, and much lower speeds are what’s in common use.