Sales of Data Center Switches Returned to Y/Y Growth in 3Q 2020


According to Dell’Oro Group, global Data Center Switch market revenue recovered in 3Q 2020, after two consecutive quarters of mid to high single-digit decline. The recovery was driven by Europe and the Asia Pacific regions. North America declined for the fourth consecutive quarter.

“Ongoing softness in the broader enterprise market as well as at some of the Tier 1 Cloud Service Providers (SPs), particularly Facebook and to a lesser extent Microsoft, continued to weigh on the North American market,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “Meanwhile, in line with our expectations, sales in China were up strong double-digits for the second consecutive quarter. This growth in China was blostered by strong demand from Cloud SPs, namely Alibaba, Tencent, Bytedance, and Kuaishou. Other countries in the APAC region as well as in Europe benefited from relaxed lockdown measures as well as some large Telco SPs deals,” added Boujelbene.

Additional highlights:

  • Vendors with revenue share gain in the year-to-date period are H3C, Ruijie, and white box switch vendors.
  • 25 Gbps, 100 Gbps, and 400 Gbps comprised more than 50 percent of port shipments in the first nine months of the year.

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