Showing posts with label Dell’Oro. Show all posts
Showing posts with label Dell’Oro. Show all posts

Monday, February 22, 2021

Dell’Oro: Ericsson and Nokia gain in RAN market

Preliminary estimates suggest that the 2G-5G radio access network (RAN) market ended the year on a high note, with the full year 2020 revenues marking a new record since we started tracking the program in the year 2000, according to a newly published report from Dell'Oro Group.

Additional highlights from the 4Q 2020 RAN report:

  • Initial estimates suggest that vendor rankings remained stable between 2019 and 2020, while revenue shares were impacted to some degree by the state of the 5G rollouts in China and North America.
  • Ericsson and Nokia maintained their No. 1 and No. 2 RAN revenues rankings excluding China. Both suppliers improved their RAN revenue shares outside of China, accounting for 35 percent to 40 percent and 25 percent to 30 percent of the overall RAN market, respectively.
  • Huawei maintained its No. 1 ranking for the global RAN market, reflecting share gains in China.

“While we correctly identified the overall trajectory of the market going into the year and maintained the positive outlook even as the pandemic intensified and economists adjusted their GDP projections sharply downward,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “We also need to recognize that we completely underestimated the magnitude and the breadth of the ascent in the fourth quarter and for the full year 2020, reflecting stronger than expected results in multiple regions,” continued Pongratz.


Thursday, October 29, 2020

Dell'Oro: SASE market to grow at 116% CAGR

The emerging Secure Access Service Edge (SASE) market is expected to grow at a compounded annual growth rate of 116 percent over the next five years (2019-2024), according to a new report from Dell'Oro Group.  

SASE comprises the integration of SD-WAN, Secure Web Gateway, and Firewall technologies that brings networking and security into a unified, cloud-based service offering to increase the scalability, agility, and security of the network while reducing the total cost of ownership.


“SASE holds great appeal because it unifies and simplifies networking and security across a wide variety of network use cases, ranging from larger headquarter/branch networks down to individual users,” said Mauricio Sanchez, Research Director at Dell’Oro Group. “Over the next five years, we expect the initial thrust for SASE to come from small to medium enterprises, for whom unification and simplification rank high, but also expect larger enterprises to begin pivoting.” 

Additional highlights from the SASE 5-Year Forecast Advanced Research Report:

Compared to the hardware, the software will account for the vast majority of SASE revenue and is expected to continue increasing its contribution over the next five years.

The combination of software and hardware sold as physical appliances will account for the vast majority of SASE revenue in the near-term. However, in the long-term will switch to revenue from cloud-hosted Software-as-a-Service (SaaS).

https://www.delloro.com/advanced-research-report/secure-access-service-edge-sase/



Sunday, July 26, 2020

Dell'Oro: Worldwide data center CAPEX continues to grow

Data center capex, which includes capex for servers and other data center infrastructure equipment, is forecasted to grow at a 6% CAGR to just over $200 B over the next five years, according to Dell'Oro Group. Growth is forecasted to be mixed depending on the customer segment. The Cloud, which already accounts for more than 60% of the worldwide data center capex, will continue to gain momentum over Enterprise/On-premise data center deployments. Edge data centers deployed over Telco networks could emerge in the longer-term horizon.

Capex on servers, which generally accounts for nearly half of the data center capex, may be influenced by the following factors:

  • Change in server unit demand from Cloud capacity and digestion cycles.
  • Market volatility of commodity pricing of components such as memory.
  • Server refresh cycles, which could prompt the replacement of aged servers and drive new deployments, could impact server architecture and pricing.
  • Servers also drive the demand for auxiliary data center infrastructure equipment such as networking switches, storage systems, and facilities.


The COVID-19 pandemic is expected to profoundly disrupt global demand for data center infrastructure equipment in 2020. Impacted vertical industries, especially brick-and-mortar retail, travel, hospitality, and small and medium enterprises, have seen a pull-back in IT spending as they wait for the business climate to stabilize. As enterprises seek to conserve capital, Public Cloud, which offers a flexible and consumption-based infrastructure, could help meet the growing demands of remote work and distance learning. The COVID-19 pandemic and the ensuing recession may have the long-lasting effect of accelerating the permanent migration of certain industries and workloads to the Cloud.

Market and Technology Trends to Watch Out For

  • The Top 4 U.S. Cloud service providers—Amazon, Facebook, Google, and Microsoft—are positioned to continue their momentum of expansion over the next five years. Servers will continue to be consolidated in fewer mega Cloud data centers that could potentially provide greater capacity than the same number of servers spread out across thousands of Enterprise data centers.
  • The Top 4 U.S. Cloud service providers have been prolonging the useful life of servers in an effort to lower server depreciation expense while maintaining high efficiencies and reliability of their server fleet.
  • The Intel server processor refresh cycles have historically influenced IT spending. While the major Cloud service providers typically ramp server capacity outside of the processor refresh cycle, the upcoming Intel 10 nm Whitley server platform refresh due later this year could generate an uplift on server spending. Viable alternatives to Intel processors, AMD EPYC and ARM, for server and storage system applications are starting to materialize in certain markets.
  • Various open-source organizations have come together to share and standardize best practices in the design of efficient, scalable, and sustainable data center infrastructure. The Open Compute Project (OCP), in particular, has introduced various technological innovations in the areas of server and server connectivity, rack architecture, and networking switches, which could shape the future development of data center infrastructure.


https://www.delloro.com/news/worldwide-data-center-capex-to-grow-6-percent-cagr-by-2024-2/

Sunday, June 7, 2020

Dell’Oro: Mobile Core Network market grew 10% in Q1

The Mobile Core Network market grew 10 percent year-over-year to nearly $8 Billion for the trailing four quarters ending in 1Q20, according to a new report from Dell'Oro Group. Growth is expected to accelerate over the next four quarters due to 5G Core deployments.

“There are other factors influencing the uptake. The COVID-19 pandemic is now seen mostly as a positive for the wireless infrastructure sector with more demand for voice and data. Plus the T-Mobile/Sprint merger has completed, and the new T-Mobile is moving ahead with an aggressive 5G build,” Bolan continued.

Additional highlights from the Mobile Core Network 1Q20 report:

  • Revenue market share for Huawei and Ericsson combined for over half of the market, while Nokia, ZTE, and Cisco totaled over 25 percent, for the trailing four quarters ending in 1Q20.
  • We forecast the Network Function Virtualization penetration will approach 70 percent in 1Q21 due to the revenue growth in 5G Core deployments.

Sunday, February 23, 2020

Dell'Oro: Mobile Core Network market approaches $8 billion

The Mobile Core Network (MCN) market expanded for the second consecutive year and approached $8 billion in 2019, according to a new report from Dell'Oro Group. Ericsson, Huawei, and Nokia ranked as the top three vendors.

Some highlights from the Mobile Core Network 4Q 2019 report:

  • The top six MCN vendors for 2019, in alphabetical order, were Cisco, Ericsson, Huawei, Mavenir, Nokia, and ZTE. These vendors accounted for over 85 percent of the worldwide MCN market revenue.
  • The regional revenue rankings were: Asia Pacific; Europe, Middle East, and Africa; North America; and Caribbean and Latin America respectively.

“The MCN market is expected to continue to grow in 2020, but at a slower pace,” stated David Bolan, Senior Analyst, Dell’Oro Group. “Some of the contributing factors are an anticipated slow take-up of the 5G Core, slower growth in India due to service providers’ financial stress created by increased tax burdens, and the uncertainty in the European Union resulting from unresolved security concerns. The anticipated growth in 2020 will be to serve the increasing number of 4G and 5G subscribers and associated devices like wearables and tablets, the seemingly unquenchable thirst for data, and the growing use of Internet of Things (IoT) in LTE networks."

Thursday, January 30, 2020

Dell'Oro: Demand for 400G switch expected to grow this year

Ethernet Switch Data Center port shipments are forecast to surpass 60 million by 2024, with more than 50 percent of the port shipments will operate at 100 Gbps, 400 Gbps and 800 Gbps - according to a recent report from Dell'Oro Group.

“800 Gbps, 400 Gbps, as well as new waves of 100 Gbps will be enabled by faster SerDes technologies and higher speed optics,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Optics will continue to play a vital role in the data center switch market. The availability of high volume, low-cost optics is crucial in driving any speed transition. Additionally, as network speed increases beyond 800 Gbps, pluggable optics will hit density and power issues. Hence it will become imminent for the industry to adopt alternative options such as Co-Packaged Optics (CPO). We expect such transition to bring major disruptions to the supply chain as it requires new business and serviceability models,” added Boujelbene.

Additional highlights from the Ethernet Switch – Data Center 5-Year Forecast Report:

  • Demand for 400 Gbps from the broader market is expected to ramp by end 2020 and in early 2021.
  • 400 Gbps and higher speeds are predicted to account for more than 25 percent of port shipments by 2024.

Sunday, December 8, 2019

Dell'Oro: Broadband access equipment market drops 12%

Global revenue for broadband access equipment market decreased 12% year-over-year (Y/Y) to $3.2 billion, according to a newly published report by Dell’Oro Group.

A 371 percent Y/Y increase in XGS-PON OLT revenue and continued growth of XG-PON1 OLT ports and CPE offset continued DSL declines.

“Operators’ continued push to increase their fiber investments is resulting in strong Y/Y gains in PON OLT ports,” said Jeff Heynen, Senior Research Director at Dell’Oro Group. “Though XGS-PON continues to grow rapidly, 2.5 Gbps GPON remains the workhorse in the market,” explained Heynen.

Some highlights:


  • Total cable access concentrator revenue decreased 31 percent Y/Y to $287 M, driven once again by a slowdown in CCAP license purchases in North America
  • Total DSL port shipments plummeted 28 percent Y/Y, with all technologies showing significant Y/Y declines

Saturday, November 30, 2019

Dell’Oro: 5G RAN spending on the rise

Surging 5G NR demand propelled the RAN market in 3Q 2019 to a fifth consecutive quarter of year-over-year (Y/Y) growth for the first time in over a decade, according to Dell’Oro Group.

  
“The positive momentum that has characterized this market since the upswing began in the second half of 2018 extended into 3Q 2019, underpinned by a 5G ramp that is accelerating at an extraordinary pace,” said Stefan Pongratz, Analyst and Vice President at Dell’Oro Group. “While mid-band Massive MIMO continues to drive the lion share of the 5G capex, both low-band and Millimeter Wave (mmW) 5G NR deployments accelerated significantly in the quarter,” continued Pongratz.

Additional highlights from the 3Q 2019 RAN report:

  • The broad-based pickup in RAN revenues was reflected in shipment trends, with total BTS shipments—macro and small cell—advancing at a double-digit pace year-to-date (1Q19 through 3Q19).
  • Aggregate growth for RAN systems using advanced antenna systems—including sub 6 GHz Massive MIMO and mmW—accelerated in the third quarter, accounting for 10 to 20 percent of the year-to-date RAN revenues.
  • RAN revenue rankings for the top three vendors—Huawei, Ericsson, and Nokia—were stable in the quarter and for the year-to-date period.