“SD-WAN offers a compelling reason for businesses to upgrade their WAN infrastructures, which is something we haven’t seen in many years,” said Shin Umeda, Vice President at Dell’Oro Group. “There is no doubt that COVID-19 has created a major bump in the road, but the fundamental drivers for SD-WAN adoption have not changed, and may even be enhanced if work from home solutions can be incorporated,” added Umeda.
“The network security market was not immune to the pandemic in 1Q 2020,” said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances. “We expect the pandemic to continue to cause revenue lumpiness for the rest of 2020, with winners and losers like in 1Q 2020
As the COVID-19 pandemic started to spread in Asia, Europe and then North and South America, it impacted demand for campus switches,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Because of macroeconomic uncertainties, many customers are pausing IT spending and, in some cases, cancelling orders as they revisit their budget to adjust to the new situation.
Data center capex returned to higher growth in 1Q 2020, as some of the major Cloud service providers had reverted from capacity digestion to expansion phase,” said Baron Fung, Research Director at Dell’Oro Group. “Stay-at-home orders around the world are placing excess burdens on Cloud infrastructure, prompting some Cloud service providers to bolster capacity in critical areas of the network.
The first half of 2020 will give way to a sustained rebound in broadband equipment spending in the second half of the year,” said Jeff Heynen, Senior Research Director, Broadband Access and Home Networking. “The need to expand residential broadband speeds and availability will ultimately win out over the current macroeconomic slowdown,” explained Heynen.
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.
Stefan Pongratz, VP at Dell’Oro Group, noted that Nokia’s cost reduction efforts, driven by its migration from field-programmable gate arrays (FPGA) to ASICs, has already been taking place in the background. 5G equipment running on Nokia’s ReefShark SoCs comprised about 10% of its 5G shipments in Q4 2019, he explained.
Stefan Pongratz said it will likely take some time before the Massive MIMO business case makes sense beyond the early adopter segment for indoor applications. “There is no doubt that the transceiver density will continue to grow over time for both outdoor and indoor systems