Market Update for 2Q 2019 – DC Switch & WLAN


According to Dell’Oro Group, a market weakness in China has suppressed Data Center Switch market growth in 2Q 2019 and Cisco is the new leader in 100 GE revenue, while Arista continues to lead in 100 GE shipments.

“Data Center switch market revenue in China declined for the first time in more than five years, due to a slowdown in spending from both Cloud Service Providers (SPs) as well as enterprises,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.”

Also, the U.S. government’s actions pertaining to Huawei have created some pause in China market demand. In contrast, data center switch market revenue in North America managed to grow despite a slowdown in spending by major Cloud SPs, Most of the slowdown was driven by reduced server purchases while data center switches performed well. Large enterprises also contributed to the growth in North America as they accelerated their 100 GE adoption and helped Cisco emerge as the new leader in 100 GE revenue in 2Q 2019,” added Boujelbene.

Additional highlights:

  • H3C gained more than 3 points of revenue share Y/Y in China
  • All speeds were down Y/Y in shipments and revenue; except 25, 50, 100 and 400 GE.

2Q 2019 Wireless LAN market saw an overall slowdown in shopments, whilst WiFi 6 adoption lifted sales of Aruba Networks, Extreme Networks, and Huawei.

“Overall Wireless LAN market sales were soft, but not unusual compared to prior years. However, what caught our eye was the slowdown in overall unit shipments,” said Tam Dell’Oro, Founder and CEO at Dell’Oro Group. “The slowdown came from midrange and high-end across many manufacturers. In contrast, sales were robust growing well into the double-digits Y/Y at the lower-end price-sensitive segment. WiFi 6 is picking up momentum as several additional vendors began shipping products during the quarter such as Cisco, Extreme Networks, and Fortinet. Select vendors with WiFi 6 already shipping enjoyed a surge in sales such as Aruba Networks, and Huawei,” added Dell’Oro.

Additional highlights:

  • Sales within China outpaced all other regions of the world.
  • Sales to the lower-Education vertical industry bounced back after declining for several quarters, while notable strength was observed in the government and manufacturing sectors.
  • NBASE-T ports rose sharply Q/Q, a trend we forecast to continue.

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