Both the Enterprise and Cloud markets continued to consume excess capacity after an unprecedented year of IT investments in 2018,” said Baron Fung, Director at Dell’Oro Group. “In addition, macroeconomic factors and declining commodity costs played a role in dampening demand. But growth is on the horizon
“Due to macroeconomic uncertainties, and the lack of business confidence in North America and Europe, sales cycles are being elongated,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
The worldwide Service Provider Router market declined 3 percent year-over-year in 3Q 2019. Performance varied widely across the different regions of the world, and most notable was the Asia-Pacific region where a sharp drop in sales to India more than offset growth in other countries.
Global revenue for broadband access equipment market decreased 12 percent year-over-year (Y/Y), reaching $3.2 Billion. A 371 percent Y/Y increased in XGS-PON OLT revenue, and continued growth of XG-PON1 OLT ports CPE offset continued DSL declines.
Although spending from some Tier 1 Cloud Providers such as Google, Amazon and Microsoft accelerated during the quarter, softer demand across the broader market of Tier 2 Cloud Providers and some large enterprises suppressed market growth,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
In addition to allowing other security vendors to deploy their software on top of this distributed hardware framework, it also opens the door for a future AT&T software-as-a-service play — and a way for operators to monetize edge services, said Mauricio Sanchez, Dell’Oro Group’s research director of network security. “One could imagine that AT&T, once they deploy this type of architecture and really get it off the ground, to offer security series at those distributed PoPs [points of presences].”