“The network security market was still in the grips of the pandemic in 2Q20,” said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances. “We foresee the current market dynamics to continue in 3Q20 and only begin shifting again late 2020 or early 2021
“The major U.S. and China based Cloud service providers have accelerated expansion of server capacity to meet the demands of remote work and learning,”said Baron Fung, Research Director at Dell’Oro Group. “However, signs of a digestion cycle of lower growth in the second half 2020 may be imminent as the recent build-up is potentially leading to Cloud capacity and component inventories in excess of demand,” explained Fung.
“Fiber expansion projects continue to expand around the world, as evidenced by continued strong demand for OLT ports,” said Jeff Heynen, Sr. Research Director, Broadband Access and Home Networking. “The sustained fiber investments are a clear sign that providers realize just how critical premium residential broadband access is to their business,” explained Heynen.
“Government funding is clearly supporting the Wireless LAN market,” said Tam Dell’Oro, Founder, CEO, and Wireless LAN Analyst at Dell’Oro Group. “We expected overall market sales to decline well into the double-digits year-over-year, but actual results were much stronger declining only 12 percent with governments’ rapid responses.
“Shipment of 25 Gbps and 50 Gbps ports grew double-digits quarter-over-quarter as the Tier 1 and 2 Cloud service providers added server capacity to meet a surge of demand for Cloud services stemming from the pandemic. Adoption of 100 Gbps for server connectivity continues to rise to meet the growing demands of high-performance computing and AI,” said Baron Fung, Research Director at Dell’Oro Group.