Thursday, June 20, 2019

IDC: Cloud infrastructure spending to cool down

Vendor revenue from the sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, grew 11.4% year over year in the first quarter of 2019 (1Q19), reaching $14.5 billion, according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC lowered its forecast for total spending on cloud IT infrastructure in 2019 to $66.9 billion – down 4.5% from last quarter's forecast – with slower year-over-year growth of 1.6%.

"As the overall IT infrastructure goes through a period of slowdown after an outstanding 2018, the important trends might look somewhat distorted in the short term," said Natalya Yezhkova, research vice president, Infrastructure Systems, Platforms and Technologies at IDC. "IDC's long-term expectations strongly back continuous growth of cloud IT infrastructure environments. With vendors and service providers finding new ways of delivering cloud services, including from IT infrastructure deployed at customer premises, end users have fewer obstacles and pain points in adopting cloud/services-based IT."

Some highlights from IDC:


  • Vendor revenue from hardware infrastructure sales to public cloud environments in 1Q19 was down 13.4% compared to the previous quarter (4Q18) but increased 8.9% year over year to $9.8 billion. This segment of the market continues to be highly impacted by demand from a handful of hyperscale service providers, whose spending on IT infrastructure tends to have visible up and down swings. 
  • After a strong performance in 2018, IDC expects the public cloud IT infrastructure segment to cool down in 2019 with vendor revenue dropping to $44.5 billion, a 2.2% decrease from 2018. Although it will continue to account for the majority of spending on cloud IT environments, its share will decrease from 69.1% in 2018 to 66.5% in 2019. In contrast, spending on private cloud IT infrastructure has showed more stable growth since IDC started tracking sales of IT infrastructure products in various deployment environments. In the first quarter of 2019, vendor revenues from private cloud environments increased 16.9% year over year reaching $4.7 billion. IDC expects spending in this segment to grow 10.1% year over year in 2019.
  • Overall, the IT infrastructure industry is at a crossroads in terms of product sales to cloud vs. traditional IT environments. In 3Q18, vendor revenues from cloud IT environments climbed over the 50% mark for the first time but has since fallen below this important threshold. In 1Q19, cloud IT environments accounted for 48.8% of vendor revenues. 
  • For the full year 2019, spending on cloud IT infrastructure will remain just below the 50% mark at 49.4%. Over the long-term, however, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.
  • Spending on the three technology segments in cloud IT environments is forecast to deliver growth for Ethernet switches and storage platforms while compute platforms are expected to decline in 2019. Ethernet switches will be the fastest growing at 20.9%, while spending on storage platforms will grow slightly at 1.9%. Meanwhile, compute platforms will decline by 2.8% in 2019 but will remain the largest category of spending on cloud IT infrastructure at $34.2 billion.
  • Sales of IT infrastructure products into traditional (non-cloud) IT environments remained flat compared to 1Q18. For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 3.5%, as the technology refresh cycle that drove market growth in 2018 is winding down. By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 42.4% of total worldwide IT infrastructure spending (down from 51.9% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.
  • Most regions grew their cloud IT Infrastructure revenues in 1Q19. Middle East & Africa was fastest growing at 35.3% year over year, followed by Western Europe at 25.4% year-over-year growth. Other growing regions 1Q19 included Central & Eastern Europe (18.3%), Canada and Japan (both at 14.6%), the United States (10.7%), and China (5.4%). Cloud IT Infrastructure revenues were down slightly year over year in Asia/Pacific (excluding Japan) (APeJ) by 1.2% and in Latin America by 0.2%.

Orange Business Services and Cisco drive SD-LANs

Orange Business Services is working with Cisco to help customers transform their enterprise local area network (LAN) into software-defined LANs (SD-LAN).

Building on its existing relationship and SD-WAN customer successes, the companies will now develop SD-LAN solutions in the Orange Open Labs program, which is tailored to address individual customers’ business challenges and use cases with network automation, analytics and security. The Orange Open Labs provide a global mix of physical and virtual resources for innovation and development.

An SD-LAN creates a centrally-managed wired and wireless network architecture, which is easier to integrate, operate and run, enabling businesses to work faster and smarter. SD-LAN provides highly secure anytime, any device, anywhere access and a high-quality user experience.

“Through our innovative partnership with Cisco and a commitment to our Open Lab environment, we look forward to working together to harness the agility and scalability of SD-LAN. Leveraging our proven success with Flexible SD-WAN, we aim to create an end-to-end networking journey in an optimized, adaptable enterprise network environment,” said Pierre-Louis Biaggi, vice president, Connectivity Solutions, Orange Business Services.

https://www.orange-business.com/en/press/orange-business-services-and-cisco-co-innovate-and-power-next-generation-sd-lans-0


Hawaiki activates Los Angeles branch on its transpacific cable

Hawaiki Submarine Cable activated a new direct route to Los Angeles for its transpacific network linking Australia, New Zealand and the United States.

The new route – based on the most easterly segment of the SEA-US cable – completes Hawaiki’s existing links to the United States, including Hillsboro, Seattle and Hawaii. Los Angeles becomes Hawaiki’s third PoP on the US West coast.

The new route adds resiliency to the system and cuts latency between Sydney and Los Angelea.

“As demand for capacity continues to rise sharply, customers are constantly looking for versatile connectivity solutions. This expansion marks an important milestone for Hawaiki as it both strengthens our position in the US market and greatly enhances our network flexibility,” said Hawaiki CEO, Remi Galasso.


  • Launched in July 2018, the Hawaiki transpacific cable is a 15,000 km fibre optic deep-sea, carrier-neutral cable with a design capacity of 67 Tbps. Hawaiki is the fastest and largest capacity link connecting Australia and New Zealand to Hawaii and mainland United States.

Druva raises additional $130 million for data-as-a-service

Druva, a start-up based in Sunnyvale, California, announced a further $130 million in new funding for its cloud data protection and management solutions.

Druva provides a data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence. Earlier this month, Druva announced the Druva Cloud Platform Tech Preview, which converges its Druva Phoenix and Druva inSync cloud solutions, and offers a unified view into services and data.

The new funding was led by Viking Global Investors and included participation from new investors including certain funds advised by Neuberger Berman and Atreides Management, as well as existing investors including Riverwood Capital, Tenaya Capital, and Nexus Venture Partners. This puts total capital raised by Druva at $328 million.

“The line between data and business is blurring. The data management market is forecasted to be worth $55 billion next year, yet the landscape is dominated by solutions that are 20 years old. Druva is disrupting the way enterprises protect and leverage their data with a modern, cloud-native SaaS platform,” said Jaspreet Singh, Founder and CEO, Druva. “Today’s funding will help Druva to power data protection for the cloud era, and accelerate our momentum to better serve the needs of enterprise customers.”

Nokia Bell Labs increases battery energy density 2.5X with Ireland's AMBER

Nokia Bell Labs and AMBER, the SFI Centre for Advanced Materials and BioEngineering Research hosted at Trinity College Dublin, have developed a new formula for battery composition that increases energy density of batteries 2.5X. The researchers see far-reaching implications for smartphones, drones, electric cars, robots, etc.

A patent has been filed to protect this new technology design and help bring it to the marketplace. A study discussing the battery research performed by Nokia Bell Labs and AMBER has been published in Nature Energy a leading international science journal. Carbon nanotubes are cited as an enabling technology

Nokia Bell Labs has been collaborating with AMBER as part of the Nokia Bell Labs Distinguished Academic Partners Program. The program brings together Nokia Bell Labs researchers with the best and brightest minds at the world's top universities to solve future human needs, transform human existence, and deliver disruptive innovations.

"By packing more energy into a smaller space, this new battery technology will have a profound impact on 5G and the entire networked world," said Paul King, one of the lead investigators on the project and Member of the Technical Staff, Nokia Bell Labs.  "The combination of Nokia Bell Labs industry and device knowledge and AMBER's materials science expertise allowed us to tackle an extremely difficult problem involving multiple disciplines. Our results were achieved through the deeply collaborative mode in which we work, underscoring the value of engaging with AMBER as part of our global research strategy."

"The significant advancement in battery technology outlined in this research is a testament to the strong collaboration between AMBER and Nokia Bell Labs. Bringing scientists together from industry and academia with a common research goal has resulted in a substantial scientific breakthrough," said Dr. Lorraine Byrne, AMBER Executive Director. "AMBER's partnership with Nokia Bell Labs through their Distinguished Academic Partners Program has been a hugely positive experience and clearly illustrates the benefits of industry-academic engagements. I look forward to AMBER's collaboration with Nokia Bell Labs continuing to break new boundaries in science creating impact for society."

https://www.nature.com/articles/s41560-019-0398-y

STACK to double its data center capacity in Chicago

STACK INFRASTRUCTURE, a data center company with presence in six key U.S. markets, announced plans for a significant expansion of its Chicago data center campus. The company will build a new data center adjacent to its existing facility, which currently offers 13MW of critical power and 221,000 square feet of space. The new multi-story data center will offer at least 20MW of additional critical capacity with the possibility of additional growth, bringing STACK’s total capacity at its Chicago data center campus to at least 33MW.

“Chicago is one of a number of important and growing markets for our clients, and as a result, it is a key market for STACK. We’re committed to investing here so that we can continue to support our clients and stay ahead of their needs,” said Brian Cox, Chief Executive Officer of STACK. “In keeping with our core commitment to being a trusted partner, this project delivers on our promise to strategically evolve and align our offering with our clients’ growth trajectories.”

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