Data center switch revenue has showed a strong recovery in China during the second quarter, growing nearly 30 percent year-over-year (Y/Y). In the meantime, revenue outside of China declined at a steeper rate than in 1Q 2020.
“An early control of the COVID-19 pandemic in China, combined with government stimulus as well as a strong demand from Chinese Cloud Service Providers (SPs) boosted revenue growth in the region in the second quarter,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Additionally, this strong demand in China was not hindered by major supply issues as Chinese vendors were so far able to secure enough inventory to meet the demand in the quarter. Meanwhile, revenue outside of China were challenged by both supplies as well as demand headwinds,” added Boujelbene.
Additional highlights on the 2Q 2020 Ethernet Switch – Data Center sector includes:
- Arista, Cisco, and Juniper recorded a double-digit Y/Y revenue decline in 2Q 2020.
- Despite market weakness, demand remained strong from some large Cloud SPs such as Amazon, Microsoft, Alibaba, and Tencent.
- 400 Gbps shipment reached nearly a quarter-million ports in 2Q 2020, driven mainly by Google and Amazon.