Campus switch revenue slides again in Q2: Dell’Oro
According to a recent report by Dell’Oro Group, worldwide Campus Switch revenue deteriorated further in 2Q20, down 9 percent year-over-year (Y/Y), following a 7 percent decline in the first quarter.
However, the analyst notes the market weakness occurred mostly in North America and Europe, impacting vendors with exposure in those markets, namely Cisco, Extreme Networks, HPE Aruba, and Juniper Networks. Meanwhile, the report adds the Chinese market jumped 8 percent Y/Y, benefiting Huawei, H3C, and Ruijie Networks.
“Excluding some pockets of strength at certain high-end enterprises and industry verticals such as government and public sector, demand for campus switches was generally suppressed by the COVID-19 pandemic,” commented Sameh Boujelbene, Senior Director at Dell’Oro Group.
Boujelbene continued, “Small and medium businesses with limited IT budgets were impacted the most and reduced their spending on campus switches at twice the rate that of larger enterprises. Meanwhile, sales in China rebounded; driven by an early control of the pandemic, government stimulus, and improvement in supply challenges.”
On the brighter side, Dell'Oro's 2Q20 Ethernet Switch – Campus Report also noted that NBASE-T shipments were up by double-digits, reflecting a healthy spending from high-end customers.
Meanwhile, the report added that Arista Networks hit its target of $100 million in cumulative revenue since the firm entered the Campus market in 3Q19. Half of this revenue were driven by switches, and the remainder by WLAN and services, found the analyst.
