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.
Power over Ethernet technology has evolved to be a key part of wireless LAN architectures, smart buildings and enterprise networks
Dell’Oro’s inaugural SD-WAN market share report indicated a 64% growth for the technology in 2019 – just surpassing $1 billion. “While 2019 was breakout year for SD-WAN adoption, it is still early days for market penetration,” said Shin Umeda, vice president at Dell’Oro Group.
“DOCSIS 4.0 is critical in setting the roadmap for all the technologies, and obviously for all of the components suppliers and system vendors to start developing to,” said Jeff Heynen, senior research director at Dell’Oro Group.
5G networks will supercharge the convergence of IT and operational technology (OT) networks and teams, and ultimately this is a positive development. Among the benefits: industrial machines, sensors, and other connected devices can learn on the fly using artificial intelligence (AI) and machine learning.