Campus switch market results robust in Q2 despite weakness in China

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Led by Cisco and H3C, the campus switch market recorded robust growth in Q2, according to a report by Dell'Oro Group. (Pixabay)

The campus switch market was propelled in the second quarter of this year by growth from Cisco and H3C, while Huawei and HPE turned in soft results, according to a report by Dell'Oro Group. The report further observed that Cisco's and H3C's growth more than offset the weakness in the quarter by HPE and Huawei.

“Overall campus switching sales were robust in Q2 2019, with most of the growth driven by North America and Europe, while sales in China declined,” said Sameh Boujelbene, senior director at Dell’Oro Group, in a statement. “Although growth in China has been decelerating over the past few quarters, the report indicated this was the first quarter of revenue decline in about three years.

"All this decline was driven by Huawei due to project delays, while H3C, Sundray and Ruijie continued to grow during the quarter. While it is difficult to assess whether Huawei’s project delays were caused by macro-economic uncertainties or U.S. government’s actions towards the company, we have yet to see much competitive displacement of Huawei so far."

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Cisco's Catalyst 9000 switches helped fuel campus switching market growth in the second quarter. Cisco CEO Chuck Robbins has touted the Catalyst 9000 switches as the fastest growing product in Cisco's history. Cisco's Catalyst 9000 router sales were a factor in pushing first quarter growth this year in the campus switch market, according to Dell'Oro Group.

RELATED: Cisco drove Q1 campus switching market growth: report

Cisco also drove most of the year-over-year growth in the switch market, and gained three points of worldwide revenue share, according to Dell'Oro Group. HPE and Huawei were both down 1% year-over-year, according to Boujelbene in an email to FierceTelecom. HPE's revenue declined year-over-year for the second consecutive quarter.

Dell'Oro Group also said that 2.5 Gbps and 5.0 Gbps port shipments more than doubled year-over-year.

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