“The market has returned to pre-pandemic levels, and we saw the strongest rebound in North America, followed by Europe and parts of the Asia Pacific region,” said Shin Umeda, Vice President at Dell’Oro Group. “Service providers are proceeding with the critical network technology upgrades that were delayed last year, and that bodes well for the remainder of this year,” added Umeda.
Although a favorable comparison with the year-ago period played a role in this recovery, the revenue growth was also reflective of an improvement in the demand environment, fueled by ongoing government stimulus around the world as well as improving macroeconomic conditions,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
“The shift to 10 Gbps PON technologies is happening quickly and on a global basis,” noted Jeff Heynen, Vice President, Broadband Access and Home Networking at Dell’Oro Group. “The only thing preventing further expansions are supply chain constraints and increased costs,” explained Heynen.
“In light of the tightening global semiconductor supply chain, we believe server vendors are proactively increasing inventory levels in preparation for higher demand later this year,” said Baron Fung, Research Director at Dell’Oro Group.
“This quarter’s growth reflects increasing enterprise confidence and the need to invest in critical network-based security technologies,” said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances.