In Q2, sales of data center switches rebound in China—report

In Q2, sales of data center switches rebound in China—report

Data center switch revenue perked up in the second quarter in China while revenue outside of China continued to decline, according to a report. Data center switch revenue grew 30% year-over-year in China, according to research by Dell’Oro Group.

“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 boosted revenue growth in the region in the second quarter,” said Sameh Boujelbene, senior director at Dell’Oro Group, in a statement. “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.”

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Arista Networks, Cisco and Juniper Networks posted double-digit, year-over-year revenue declines in the second quarter. While those vendors struggled, demand from large cloud providers, such as Amazon Web Services, Microsoft Azure, Alibaba and Tencent, remained strong, according to Dell’Oro Group.
Driven mainly by Amazon and Google, 400 Gbps shipments were close to a quarter million ports in the second quarter.


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