Data Center Switch Revenue Plunged in the First Quarter of the Year, According to Dell'Oro Group
REDWOOD CITY, Calif., June 4, 2020 /PRNewswire/ -- According to a recent report by Dell'Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, 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.
"The COVID-19 pandemic has created some positive impact on the market as some customers pulled in orders in anticipation of supply shortage and elongated lead times," said Sameh Boujelbene, Senior Director at Dell'Oro Group. "Yet this upside dynamic was more than offset by the pandemic's more pronounced negative impact on customer demand as they paused purchases due to macro-economic uncertainties. Supply constraints were not major headwinds during the first quarter but expected to become more apparent in the next quarter," added Boujelbene.
Additional highlights from the 1Q 2020 Ethernt Switch – Data Center Report:
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SOURCE Dell'Oro Group
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