05 Dec Report: Facebook, Microsoft drag down Q3 data center switch market
Thanks to the European and Asia-Pacific regions, global data center switch revenue bounced back year-over-year in Q3 after two consecutive quarters of mid to high single-digit declines. By contrast, revenue in the North American data switch market decreased for the fourth consecutive quarter due in part to a capex slowdown by some of the hyperscale cloud providers.
“Ongoing softness in the broader enterprise market as well as at some of the Tier 1 cloud service providers, 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, in a statement. “Meanwhile, in line with our expectations, sales in China were up (by) strong double-digits for the second consecutive quarter.
“This growth in China was bolstered by strong demand from cloud service providers, 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 service provider deals.”
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