DCI optical transport equipment market jumped 13% in Q1: Dell’Oro

June 8, 2020
The top 3 vendors were Ciena, Cisco, and Infinera, reports the analyst.

According to a recently published report from Dell’Oro Group, sales of optical transport equipment used for data center interconnect (DCI) increased 13 percent year-over-year in 1Q 2020.

The analyst adds that the segment's top three vendors, Ciena, Cisco, and Infinera, benefited the most from the rising demand for data center connectivity, with a combined market share of over 70%.

“Data center interconnect continued to be an important application for optical transport equipment, especially in times like this,” commented Jimmy Yu, vice president at Dell’Oro Group.

Dell'Oro's 1Q 2020 Optical Transport Quarterly Report also notes that spending on optical equipment for DCI was highest for metro spans in the quarter, outpacing the growth for DCI used in long haul spans.

Yu added, “While macroeconomic conditions will suffer this year due to the actions taken to contain the spread of COVID-19, we anticipate demand for data center connectivity will continue to rise as people rely more on cloud-based services."

The quarterly report offers in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments (by speed including 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps).

The latest report finds most companies purchasing DCI equipment use the highest available wavelength speeds, driving sharp demand for 400 Gbps wavelengths.

The comprehensive quarterly report tracks DWDM long haul, WDM metro, multiservice multiplexers (SONET/SDH), optical switch, and optical packet platforms, as well as data center interconnect (metro and long haul), and disaggregated WDM.

Dell'Oro further reports that Cisco and Infinera each gained 6 to 7 percentage points of data center interconnect market share in 1Q 2020, compared to 1Q 2019, as their customers buy more 600 Gbps-capable disaggregated WDM systems.

For more information, contact Dell’Oro Group at +1.650.622.9400 or visit https://www.delloro.com.

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