Data center switch revenue growth anemic in Q4: Coronavirus will create more headwinds

Look for the market softness in the data center switch market to continue in the first half of this year, according to Dell’Oro Group. (Pixbay)

According to a recent report by Dell’Oro Group, the worldwide data center switch market grew by a measly 1% year over year in Q4, which marked the slowest growth rate in six years. While data center switch revenue was down in North America and Europe, China’s revenues grew by double digits year over year in the fourth quarter.

The decline in the switch market growth was partially due to some of the hyperconverged service providers, namely Facebook, easing back on their capex last year. Arista Networks in particular saw a dip in its revenues last year as cloud customers reduced their capex by extending the use of their network assets, which delayed the purchase of new equipment.

Dell’Oro Group expects the switch market softness to continue in the first half of this year, which includes the potential impact from the coronavirus on both demand and supply. https://www.fiercetelecom.com/telecom/data-center-switch-revenue-growth-anemic-q4-coronavirus-will-create-more-headwinds-report

Source FierceTelecom