The global campus switch market experienced a 23% decline in revenue in the first quarter of 2024 compared to the previous year, with Arista and Ubiquiti being the only vendors to see an increase in revenue during this period. This decline was attributed to the effects of Covid-19, where companies had panic-ordered switches due to shortages during the pandemic, leading to excess inventory. Cisco, a major player in the market, experienced a significant decline in revenue during this quarter.
Campus Ethernet switches are a crucial component for providing wired connectivity for local area networks in various environments such as offices, schools, and government facilities. The decline in revenue seen in the first quarter was primarily due to the disruptions caused by the pandemic. Cisco, which had previously experienced a surge in shipments in 2023 due to high demand, saw a decline in revenue in this quarter.
Arista, known for its strength in data center switching, has been experiencing growth in sales from campus switches to large enterprises for the third consecutive quarter. Their existing customer base in the data center market has allowed them to easily expand into the campus market. Ubiquiti, a low-cost equipment provider, also saw growth in revenue during this period, catering to the price-sensitive market.
Overall, the campus switch market is still feeling the effects of the Covid-19 pandemic with a significant decline in revenue in the first quarter of 2024. Major players like Cisco have seen a decline in revenue while companies like Arista and Ubiquiti have shown growth in this challenging market environment. The excess inventory from panic-buying during the pandemic has impacted the market, and vendors are now working through this situation to stabilize their revenue and operations.
Article Source
https://www.fierce-network.com/broadband/ciscos-campus-ethernet-switch-revenues-drop-while-aristas-rise-q1-2024
