Showing posts with label IDC. Show all posts
Showing posts with label IDC. Show all posts

Thursday, September 16, 2021

IDC: Global "Whole Cloud" spending to hit $1.3 Trillion by 2025

 "Whole cloud" spending – total worldwide spending on cloud services, the hardware and software components underpinning the cloud supply chain, and the professional/managed services opportunities around cloud services – will surpass $1.3 trillion by 2025 while sustaining a compound annual growth rate (CAGR) of 16.9%, according to International Data Corporation (IDC).

"In today's digital-first world, business outcomes and innovation are increasingly tied to the ability to develop and use innovative technologies and services anywhere, as quickly as possible. Cloud is the foundation for meeting this need," said Rick Villars, group vice president, Worldwide Research at IDC. "Entire industries want to intelligently leverage data to their advantage and can do so because they have faster access to digital technologies built on a cloud foundation."

IDC's forecast looks at both shared (public) cloud services and dedicated (private) cloud services. These are defined as follows:

  • Shared (Public) cloud services are those shared among unrelated enterprises and/or consumers, open to a largely unrestricted universe of potential users, and designed for a market, not a single enterprise.
  • Dedicated (Private) cloud services are delivered as subscriptions or managed service agreements provided by cloud, colocation, outsourcing, or managed service providers to their enterprise customers.

Shared (Public) Cloud as-a-Service for infrastructure, platforms, and various software offerings continues to be the largest, and fastest increasing, engine of growth for the whole cloud market. Combined spending on shared cloud services – Infrastructure as-a-Service (IaaS), System Infrastructure Software as-a-Service (SISaaS), Platform as-a-Service (PaaS), and Software as-a-Service (SaaS) – will total $385 billion in 2021 and will see a compound annual growth rate (CAGR) of over 21.0% through 2025, reaching $809 billion.

Dedicated (Private) Cloud Services, which includes hosted private cloud services and the fast-emerging Dedicated Cloud Infrastructure–as-a-Service (DCIaaS) segment, will grow at a faster CAGR of 31.0%, but from a much smaller revenue base of $5 billion in 2021.

The as-a-Service segments of cloud spending, combining Shared Cloud as-a-Service and Dedicated Cloud as-a-Service, will account for the majority of all cloud spending throughout the forecast, growing from 55.7% in 2021 to 64.1% in 2025. These segments will also see the fastest growth in spending, with a five-year CAGR of 21.3%.

https://www.idc.com/getdoc.jsp?containerId=prUS48208321

Sunday, September 12, 2021

IDC: Switching revenues rise 11% while routing dip 0.5% in Q2

The worldwide Ethernet switch market recorded revenues of $7.4 billion in the second quarter of 2021 (2Q21), an increase of 10.8% year over year, while worldwide enterprise and service provider (SP) router market revenues declined 0.5% year over year in 2Q21 to $3.9 billion, according to IDC's Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker.

"IDC witnessed a strong start to 2021 for the global Ethernet switch market, as macroeconomic conditions improved and a growing number of organizations worldwide demonstrated perseverance and digital resilience in the face of the rolling challenges presented by the COVID-19 pandemic," said Brad Casemore, research vice president, Datacenter and Multicloud Networks at IDC. "Enterprises made notable investments in their campus networks, while hyperscalers and other providers of cloud services continue to drive growth in high-bandwidth datacenter switching."

Highlights from IDC

Switching

The Ethernet switch market's annualized growth of 10.8% builds upon the 7.6% growth in the first quarter of 2021. For the first half of the year, Ethernet switch revenues are up 9.3% over 2020. Compared to the second quarter of 2019 – before the COVID-19 pandemic – revenues increased 3.8%.

From a geographic perspective, the 2Q21 Ethernet switch market had strong results across most parts the world. In Asia/Pacific, the People's Republic of China revenues grew 11.6% year over year while Japan's market increased 8.3%. More broadly in the Asia/Pacific region, excluding China and Japan, the market rose 20.5% year over year in the quarter, buoyed by the market in Singapore growing 58.2% annually. In Europe, results were mixed: Western Europe's market rose 23.1% year over year with strength from France, which grew 39.3%. Central and Eastern Europe's market was essentially flat at 0.5% growth with Russia declining 4.8%. In the Middle East & Africa, the market increased 2.6% year over year. Across the Americas, revenues in the United States rose 6.2%, Canada's market fell 1.0%, and Latin America's market increased 8.1% year over year with Mexico rising 15.8% compared to a year earlier.

Overall port shipments increased 28.4%, driven by strength in the non-datacenter portion of the Ethernet switch market. Non-datacenter Ethernet switch revenues grew 17.7% in 2Q21 with port shipments increasing 36.1%. The non-datacenter ethernet switch portion of the market makes up 88.6% of port shipments and 58.5% of total market revenues with the balance of revenues and port shipments in the datacenter portion of the market. In the datacenter segment, revenues rose 2.4% year over year, while port shipments declined 10.6%.

The higher-speed segments of the Ethernet switch market continue to see significant growth, driven by hyperscalers and cloud providers. Market revenues for 200/400 GbE switches grew 132.5% from the first quarter to the second quarter of 2021, with port shipments more than tripling (+206.0%) on a sequential basis. 100GbE revenues increased 15.4% on an annualized basis, while port shipments rose 11.4% year over year. 25/50 GbE revenues increased 25.6% year over year while port shipments rose 1.3%.

Lower-speed switches, a more mature part of the market, saw mixed results. 10GbE port shipments rose 3.1% year over year, but revenue declined 8.4%. 10Gb switches make up 23.4% of the market's total revenue. 1GbE switches increased 33.2% annually in port shipments and 14.4% in revenue. 1GbE accounts for 35.9% of the total Ethernet switch market's revenue. 2.5/5GbE revenue increased 25.3% sequentially from 1Q21 to 2Q21, while port shipments rose 26.6% quarter over quarter.

Router Market

The worldwide enterprise and service provider router market declined 0.5% year over year in 2Q20 with the major service provider segment, which accounts for 76.7% of revenues, falling 0.8% and the enterprise segment increasing 0.4%. From a regional perspective, the combined service provider and enterprise router market increased 15.7% in Asia/Pacific (excluding Japan & China). Japan's market increased 4.9% while the People's Republic of China market was down 14.4% year over year. Revenues in Western Europe grew 3.3% year over year, while in Central and Eastern Europe the combined enterprise and service provider market was flat. The Middle East & Africa region grew 4.3%. In the U.S., the enterprise segment was down 4.8%, while service provider revenues increased 7.8%, giving the combined markets a 4.6% increase on an annualized basis. The Latin America market grew 1.0% on an annualized basis and Canada's market increased 2.2% year over year.

Company highlights

  • Cisco finished 2Q21 with a 4.5% increase in overall Ethernet switch revenues and market share of 44.1%. Cisco's combined service provider and enterprise router revenue grew 2.4% year over year with enterprise router revenue decreasing 9.8% and SP revenues increasing 10.1%. Cisco's combined SP and enterprise router market share stands at 34.2% in the quarter.
  • Huawei's Ethernet switch revenue increased 3.5% on an annualized basis, giving the company market share of 11.1%. The company's combined SP and enterprise router revenue declined 8.5% year over year, giving the company a market share of 33.4%.
  • Arista Networks saw Ethernet switch revenues increase 31.6% in 2Q21, bringing its share of the total market to 7.5%.
  • H3C's Ethernet switch revenue increased 10.6% year over year, giving the company market share of 7.0% in the quarter. In the combined service provider and enterprise routing market, H3C's revenues increased 32.6%, giving the company 2.5% market share.
  • HPE's Ethernet switch revenue increased 46.4% year over year, giving the company a market share of 6.7%.
  • Juniper's Ethernet switch revenue increased 23.3% year over year in 2Q21, bringing its Ethernet switch market share to 3.1%. Juniper saw a 3.9% decline in combined enterprise and SP router sales, bringing its market share in the router market to 9.8%.

https://www.idc.com/getdoc.jsp?containerId=prUS48222221

IDC: Worldwide server market revenue dips 2.5% in Q2

Worldwide server market revenue declined 2.5% year over year to $23.6 billion during the second quarter of 2021 (2Q21), while worldwide server shipments surpassed 3.2 million during the quarter, an increase of just 0.1% over the previous year, according to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker.

Volume server revenue was up 5.6% to nearly $20.0 billion. Midrange server revenue declined 30.0% to $2.4 billion, and high-end servers declined by 32.7% to $1.3 billion.

"Broadly speaking, server market performance was muted in the second quarter as the market shifted slightly towards single socket server configurations," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "While servers purchased directly from ODMs declined year over year, some past backlog recovery within the hyperscale datacenter community contributed to a large jump in this segment when compared to the first quarter of this year."

Overall Server Market Standings, by Company

  • HPE/H3C ended the quarter in a statistical tie with Dell Technologies for the top position in the worldwide server market. The revenue shares for the two companies were 15.7% and 15.6% respectively. 
  • Inspur/Inspur Power Systems ranked third with 9.4% revenue share. 
  • Lenovo was in fourth place while IBM came in at fifth, with 7.0% share and 5.0% share respectively. 
  • The ODM Direct group of vendors accounted for 26.7% of total server revenue and declined 8.8% year over year to $6.3 billion while accounting for 32.2% of all units shipped during the quarter.

https://www.idc.com/getdoc.jsp?containerId=prUS48221821

Monday, August 23, 2021

IDC forecasts Managed Edge Services market to reach $2.8B in 2025

Worldwide revenues for managed edge services will reach $445.3 million in 2021, an increase of 43.5% over 2020, according to a new forecast from International Data Corporation (IDC). Over the 2021-2025 forecast period, the compound annual growth rate (CAGR) for managed edge services is expected to be 55.1%.

IDC said it believes public cloud providers, or hyperscalers, will be key enablers of edge services through the partnerships they are establishing with 5G service providers. 


"Managed edge services represent a significant monetization opportunity for service providers to capitalize on their investment in edge compute," says Ghassan Abdo, research vice president, Worldwide Telecom, Virtualization, and CDN, IDC. "At the same time, service providers are keenly aware of the potential impact of the edge on their current market position and are watching closely for unforeseen competition from adjacent markets and new disruptors. Technology vendors including network equipment providers (NEPs) and software, datacenter, and networking vendors are vying to shape this market and play a significant role in delivering innovative edge services."

IDC identified three primary deployment models for managed edge services.

  • On-premises deployment: This represents managed edge use cases where the edge compute infrastructure is deployed at the enterprises' premises, also referred to as private deployment. This deployment model is intended to address the need for extra low latency and is applicable to industrial use cases, healthcare, and AR/VR applications.
  • Service provider edge deployment: This represents managed edge services provided by edge compute deployed at the provider edge, both fixed and mobile. IDC expects this deployment model to spur development of a wide range of vertical use cases.
  • CDN edge deployment: This represents managed edge services provided by edge compute deployed at the CDN POPs or edge locations. These use cases will enhance content delivery with personalized, high-fidelity, and interactive rich media customer experience.

IDC projects the on-premises edge to be the fastest-growing segment with a five-year CAGR of 74.5%. The service provider edge will be the second-fastest growing segment with a CAGR of 59.2%, which will enable it to become the largest market segment by 2022. The CDN edge segment is expected to have a five-year CAGR of 41.9%.

https://www.idc.com/getdoc.jsp?containerId=prUS48179321


Monday, August 9, 2021

IDC: public cloud infrastructure worldwide revenue at $400B in 2025

The combined Public Cloud IaaS and PaaS market is forecast to have revenues of $400 billion in 2025 with a compound annual growth rate (CAGR) of 28.8% during the 2021-2025 period, according to a recently published forecast from International Data Corporation (IDC). 

"Enterprise spending on public cloud infrastructure continues to grow faster than traditional IT infrastructure segments," said Andrew Smith, research manager Cloud Infrastructure Services. "We expect all workload segments to grow in the double digits — some slightly faster than others — as enterprises emerge from 2020 and continue to prioritize workload migration and modernization using public cloud infrastructure."


Some highlights from IDC:

  • Application development and testing, structured data management, and structured data analytics will be the largest workload segments by revenue share. Unstructured data analytics/data management and media streaming are forecast to be the fastest growing segments with CAGRs of 41.9% and 41.2%, respectively. Other business applications, file and print, and content applications will grow slower than the overall market average while still delivering double-digit growth throughout the forecast period.
  • Public cloud services remain an essential part of enterprise recovery strategy as IT organizations reevaluate budgets, build infrastructure focused on business resilience, and work toward operating efficiently and managing risk in a post-COVID-19 world.
  • Enterprises are shifting from workload migration to workload modernization on public cloud. In 2020, we saw IaaS buyers increasingly prioritize application modernization efforts, viewing modernization as an integral component of the move toward agile application delivery and cloud operations.
  • Relentless enterprise data growth continues to push many workloads to the public cloud, as enterprises look to effectively manage data growth, as well as their IT budget. In many cases, cloud infrastructure and application platforms help meet this need by enabling agile and consistent scaling of capacity that can be utilized on demand.

Thursday, July 1, 2021

IDC: Cloud compute and storage infrastructure spending up 12.5% YoY

Spending on compute and storage infrastructure products for cloud infrastructure, including dedicated and shared environments, increased 12.5% year over year in the first quarter of 2021 (1Q21) to $15.1 billion, according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud Deployment. 

Some highlights:

  • Investments in non-cloud infrastructure increased 6.3% year over year in 1Q21 to $13.5 billion.
  • Spending on shared cloud infrastructure increased 11.6% year over year in 1Q21, reaching $10.3 billion. 
  • Shared cloud infrastructure spending is expected to surpass non-cloud infrastructure spending in the near future. 
  • Spending on dedicated cloud infrastructure increased 14.7% year over year in 1Q21 to $4.8 billion with 45.5% of this amount deployed on customer premises. 
  • IDC is forecasting cloud infrastructure spending to grow 12.9% to $74.6 billion for 2021, while non-cloud infrastructure is expected to grow 2.7% to $58.5 billion after two years of declines. 
  • Shared cloud infrastructure is expected to grow by 12.2% year over year to $51.8 billion for the full year. Spending on dedicated cloud infrastructure is expected to grow 14.7% to $22.7 billion for the full year.
  • Spending on cloud infrastructure increased across most regions in 1Q21, with the highest annual growth rates in Canada (40.3%), China (PRC) (35.0%), and Asia/Pacific excluding Japan and China (APeJC) (28.8%). 
  • Western Europe grew 10.8%, the United States grew 4.5%, and Japan declined 1.1%. The smaller regions had mixed results and collectively grew 0.1%.

At the vendor level, all major vendors grew their cloud infrastructure revenue in 1Q21, with the highest growth rates belonging to Lenovo (38.2%) and Huawei (37.9%). Huawei, Lenovo, and HPE/H3C(a) each grew their market share compared to results from the prior year's first quarter.

https://www.idc.com/getdoc.jsp?containerId=prUS48050621

Thursday, May 13, 2021

IDC: Worldwide public cloud services market grew 24% in 2020

The worldwide public cloud services market, including Infrastructure as a Service (IaaS), System Infrastructure Software as a Service (SISaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), grew 24.1% year over year in 2020 with revenues totaling $312 billion, according to the International Data Corporation (IDC) Worldwide Semiannual Public Cloud Services Tracker.

Spending continued to consolidate in 2020 with the combined revenue of the top 5 public cloud service providers (Amazon Web Services, Microsoft, Salesforce.com, Google, and Oracle) capturing 38% of the worldwide total and growing 32% year over year. Thanks to an expanding portfolio of SaaS and SISaaS offerings, Microsoft now shares the top position with Amazon Web Services in the whole public cloud services market with both companies holding 12.8% revenue share for the year.

"Access to shared infrastructure, data, and application resources in public clouds played a critical role in helping organizations and individuals navigate the disruptions of the past year," said Rick Villars, group vice president, Worldwide Research at IDC. "In the coming years, enterprises' ability to govern a growing portfolio of cloud services will be the foundation for introducing greater automation into business and IT processes while also becoming more digitally resilient."

While the overall public cloud services market grew 24.1% in 2020, consistent with the past four years, the IaaS and PaaS segments have consistently grown at much faster rates. This highlights the increasing reliance of enterprises on a cloud foundation built on cloud infrastructure, software defined data, compute and governance solutions as a Service, and cloud-native platforms for application deployment for enterprise IT internal applications. IDC expects spending on foundational cloud services (especially IaaS and PaaS) to continue growing at a higher rate than the overall cloud market as resilience, flexibility, and agility guide IT platform decisions.

"Cloud service providers are rapidly expanding their portfolio of infrastructure and platform services to address confidential computing, performance-intensive computing, and hybrid deployment scenarios," said Dave McCarthy, vice president, Cloud and Edge Infrastructure Services. "Extending these foundational cloud services to customer premises and communications networks enables a broader set of use cases than previously possible."

"The high pace of growth in PaaS, IaaS, and SISaaS, which combined account for about half of the public cloud services market, reflects the demand for solutions that accelerate and automate the development and delivery of modern applications" said Lara Greden, research director, Platform as a Service. "As organizations adopt DevOps approaches and align according to value streams, we are seeing PaaS, IaaS, and SISaaS solutions become increasingly adopted and, at the same time, grow in the range of services and thus value they provide. Innovations in edge and IoT use cases are also contributing to the faster rates of growth in these markets." 

https://www.idc.com/getdoc.jsp?containerId=prUS47685521

Thursday, May 6, 2021

IDC: Global semiconductor sales hit $464 billion in 2020, up 11%

Worldwide semiconductor revenue grew to $464 billion in 2020, an increase of 10.8% compared to 2019, according to the the Semiconductor Applications Forecaster (SAF) from International Data Corporation (IDC). IDC forecasts the semiconductor market will reach $522 billion in 2021, a 12.5% year-over-year growth rate. IDC anticipates continued robust growth in consumer, computing, 5G, and automotive semiconductors.

IDC expects supply constraints will continue through 2021. While shortages initially occurred in automotive semiconductors, the impact is being felt across the board in semiconductors manufactured at older technology nodes. Much like a traffic jam and the ripple effect, a disruption on the semiconductor supply chain operating close to capacity will impact across the supply chain. The industry will continue to struggle to rebalance across different industry segments, while investment in capacity now will improve the industry's resiliency in a few years. Looking forward to 2021, IDC sees continued strong growth in semiconductor sales worldwide as adoption of cloud technologies and demand for data and services remain unchanged. Global fiscal and monetary policy remain accommodative and will provide a tailwind for continued capital investments in long term infrastructure.

"Automotive sales recovered in the second half of 2020, but the supply constraints for the automotive semiconductor market for some products will last through 2021 as fires and fab shutdowns further impacted the automotive semiconductor market and it takes time for chips to move through the automotive ecosystem, specifically in the U.S. and Europe," said Nina Turner, research manager, Automotive Semiconductors. For 2021, IDC forecasts that automotive semiconductor revenue will grow 13.6%.

"Overall, the semiconductor industry remains on track to deliver another strong year of growth as the super cycle that began at the end of 2019 strengthens this year," said Mario Morales, program vice president, Semiconductors at IDC. "The markets remain narrowly focused on shortages across specific sectors of the supply chain, but what is more important to emphasize is how critical semiconductors are to every major system category and content growth that remains unabated."

The market for semiconductors in Computing systems, such as PCs and servers, outpaced the overall semiconductor market, growing 17.3% year over year to $160 billion in 2020. "Demand for PC processors remains strong, especially in value-oriented segments," said Shane Rau, research vice president, Computing Semiconductors. "The PC processors market looks strong through the first half and likely the whole year." IDC forecasts Computing systems revenues will grow 7.7% to $173 billion in 2021.

https://www.idc.com/getdoc.jsp?containerId=prUS47664821

Saturday, March 13, 2021

IDC: Server markets grows in revenue, shrinks in shipments

Vendor revenue in the worldwide server market grew 1.5% year over year to $25.8 billion during the fourth quarter of 2020 (4Q20), however, worldwide server shipments declined 3.0% year over year to nearly 3.3 million units, according to IDC's newly updated Worldwide Quarterly Server.

"Global demand for enterprise servers was relatively flat during the fourth quarter of 2020 with the strongest increase to demand coming from China (PRC)," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "From a regional perspective, server revenue within PRC grew 22.7% year over year while the rest of the world declined 4.2%. Blade systems continued to decline, down 18.1% while rack optimized servers grew 10.3% year over year. Similar to the previous quarter, servers running AMD CPUs as well as ARM-based servers continued to grow revenue, increasing 100.9% and 345.0% year over year respectively, albeit on a small but growing base."

https://www.idc.com/getdoc.jsp?containerId=prUS47529021

Thursday, January 14, 2021

IDC: Private LTE/5G infrastructure market to reach $5.7 billion in 2024

 Worldwide revenue attributable to the sales of private LTE/5G infrastructure will grow from $945 million in 2019 to an estimated $5.7 billion in 2024 with a 5-year compound annual growth rate (CAGR) of 43.4%, according to International Data Corporation (IDC) . This includes aggregated spending on RAN, core, and transport infrastructure.


"Private LTE infrastructure is already used by select verticals worldwide to solve mission-critical networking challenges. However, the barrier to consumption has remained high, limiting adoption to organizations possessing in-house competency and access to dedicated spectrum," said Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure. "With more spectrum being made available for enterprise uses, coinciding with the arrival of commercial 5G, interest has grown toward using private LTE/5G solutions as a basis for connectivity across a multitude of mission-critical, industrial and traditional enterprise organizations."

https://www.idc.com/getdoc.jsp?containerId=prUS47318621

Tuesday, January 12, 2021

IDC: Public cloud IT infrastructure revenue growth stays strong

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, increased 9.4% year over year in the third quarter of 2020 (3Q20), according to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker. Investments in traditional, non-cloud, IT infrastructure declined -8.3% year over year in 3Q20.

Some highlights:

  • Spending on public cloud IT infrastructure increased 13.1% year over year in 3Q20, reaching $13.3 billion. During the previous quarter spending on public cloud IT infrastructure exceeded non-cloud IT infrastructure spending for the first time ever, but non-cloud IT infrastructure spending was back on top in 3Q20 at $13.7 billion. 
  • IDC expects public cloud IT infrastructure spending to surpass non-cloud IT infrastructure spending again in the near future and expand its lead going forward.
  • Spending on private cloud infrastructure increased 0.6% year over year in 3Q20 to $5.0 billion with on-premises private clouds accounting for 63.2% of this amount.
  • IDC believes the hardware infrastructure market has reached a tipping point and cloud environments will continue to account for an increasingly greater share of overall spending. 
  • Within cloud deployment environments in 2020, compute platforms will remain the largest segment (49.1%) of spending, growing at 2.3% to $36.4 billion while storage platforms will be the fastest growing segment with spending increasing 27.4% to $29.2 billion, and the Ethernet switch segment will grow 4.0% year over year to $8.5 billion.
  • Spending on cloud IT infrastructure increased across most regions in 3Q20, with the highest annual growth rates in Canada (32.8%), China (29.4%), and Latin America (23.4%). Growth in the United States was 4.7%. Japan and Western Europe declined by -6.7% and -3.4%, respectively. In all regions except Canada and Japan, growth in public cloud infrastructure exceeded growth in private cloud IT.
  • Inspur, Huawei, and Lenovo had double-digit year-over-year growth while most other major vendors, including the ODM Direct group of vendors, had single-digit growth. Cisco was the only major vendor with a year-over-year decline.


IDC: PC sales rocket ahead at 26% growth rate

 Due to ongoing work-from-home and school-from-home trends during the pandemic, global sales of traditional PCs (inclusive of desktops, notebooks, and workstations) experienced a 26.1% year over year growth during Q4 2020 to 91.6 million units, according to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The same category of devices grew 13.1% year over year for the full year 2020 with the catalysts being work from home, remote learning, and restored consumer demand.

"Every segment of the supply chain was stretched to its limits as production once again lagged behind demand during the quarter," said Jitesh Ubrani research manager for IDC's Mobile Device Trackers. "Not only were PC makers and ODMs dealing with component and production capacity shortages, but logistics remained an issue as vendors were forced to resort to air freight, upping costs at the expense of reducing delivery times."

https://www.idc.com/getdoc.jsp?containerId=prUS47274421


Wednesday, December 9, 2020

IDC: Worldwide server market revenue up 2.2% in Q3

Vendor revenue in the worldwide server market grew 2.2% year over year to $22.6 billion during the third quarter of 2020 (3Q20), according to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker. Worldwide server shipments declined 0.2% year over year to nearly 3.1 million units in 3Q20.

Volume server revenue was up 5.8% to $19.0 billion, while midrange server revenue declined 13.9% to $2.6 billion, and high-end servers declined by 12.6% to $937 million.

"Global demand for enterprise servers was a bit muted during the third quarter of 2020 although we did see areas of strong demand," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "From a regional perspective, server revenue within China grew 14.2% year over year. And worldwide revenues for servers running AMD CPUs were up 112.4% year over year while ARM-based servers grew revenues 430.5% year over year, albeit on a very small base of revenue."

  • Dell Technologies and HPE/New H3C Group were tied for the top position in the 3Q20 worldwide server market with 16.7% and 15.9% revenue share respectively. 
  • Inspur/Inspur Power Systems finished third with a 9.4% share of revenue. 
  • Lenovo was fourth with a 5.9% share and Huawei was fifth with a 4.9% share. 
  • The ODM Direct group of vendors accounted for 28.0% of total server revenue, up 8.4% year over year.


Wednesday, October 14, 2020

IDC: Worldwide IT and business services revenue hit by pandemic

Due to the pandemic, worldwide IT and business services revenue declined 1.9% year over year (in constant currency) during the first half of 2020 (1H20), according to the International Data Corporation (IDC) Worldwide Semiannual Services Tracker. IDC estimates services revenue fell below $500 billion (in constant currency) in 1H20. Taking into account the strengthening dollar, the actual decline was 3.7% yoy.

Some key insights from IDC:

  • IDC forecasts the market to continue to decline throughout the year, however, the near-term outlook is less pessimistic than a few months ago. The June market forecast update projected the market to decline 2.8% for 2020. The current forecast tempers that to just a 2.3% decline. 
  • The forecast growth rate for 2021 has also been increased by 500 basis points, from 1.4% to 1.9%, reflecting optimism for a quicker and stronger recovery.
  • IDC's view on the supply side remains intact. Most services providers have helped their clients' employees transition to working from home without major hiccups. As most providers expect to continue remote working throughout the year and even well into 2021, productivity and potential employee burnout remain a top challenge and concern for leadership. IDC believes that the short-term financial impact will be limited.
  • The demand-side shock was indeed severe and immediate. Most large global vendors, including top Indian services providers, saw their second quarter reported revenue growth reduced by at least a few percentage points from pre-COVID-19 levels.
  • Some vendors are reporting strong bookings in the second quarter and more active pipelines despite declining revenues. Sales teams are adopting quickly to virtual B2B selling and taking advantage the expanded "mind-share" of senior business leaders (more time or freed up due to no travelling/commuting and more open-minded to new ideas and new ways of doing things, unlocked by the crisis). This has already contributed to large deal making in the third quarter. Most vendors believe that in the long run the crisis is a net-positive with the COVID-19 crisis tipping organizations and consumers over to the digital world.
  • From a regional perspective, IDC's outlook for the US services market is slightly more pessimistic, but improved for several major international markets, including Europe and China. 
  • In the Americas, the services market is forecast to contract 2.7% in 2020, a slight improvement from the 2.3% contraction in the June update. 
  • The forecast for Europe received significant upward adjustments in this forecast update. While the Euro area GDP is still projected to shrink by more than 8% this year, it is less severe than previously expected.

https://www.idc.com/getdoc.jsp?containerId=prUS46934520

Tuesday, September 29, 2020

IDC: Infrastructure spending on public and private cloud increased 34.4% in Q2

Vendor revenue for infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, increased 34.4% year over year in the second quarter of 2020 (2Q20), according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker. Investments in traditional, non-cloud, IT infrastructure declined 8.7% year over year in 2Q20.

Some observations from IDC:

  • Rapid shifts in business, educational, and societal activities caused by the COVID-19 pandemic had a direct effect on IT infrastructure spending.
  • These include massive shifts to online tools in all aspects of human life, including collaboration, virtual business events, entertainment, shopping, telemedicine, and education. 
  • Spending on public cloud IT infrastructure increased 47.8% year over year in 2Q20, reaching $14.1 billion and exceeding the level of spend on non-cloud IT infrastructure for the first time. Spending on private cloud infrastructure increased 7% year over year in 2Q20 to $5 billion with on-premises private clouds accounting for 64.1% of this amount.
  • IDC believes the hardware infrastructure market has reached the tipping point and cloud environments will continue to account for an increasingly higher share of overall spending. 
  • While IDC increased its forecast for both cloud and non-cloud IT spending for the full year 2020, investments in cloud IT infrastructure are still expected to exceed spending on non-cloud infrastructure, 54.8% to 45.2%. 
  • Most of the increase in spending will be driven by public cloud IT infrastructure, which is expected to slow in 2H20 but increase by 16% year over year to $52.4 billion for the full year. Spending on private cloud infrastructure will also experience softness in the second half of the year and will reach $21.5 billion for the full year, an increase of just 0.3% year over year.
  • Within cloud deployment environments in 2020, compute platforms will remain the largest segment (50.9%) of spending at $37.7 billion while storage platforms will be the fastest-growing segment with spending increasing 21.2% to $27.8 billion, and the Ethernet switch segment will grow 3.9% year over year to $8.5 billion.
  • Spending on cloud IT infrastructure increased across all regions in 2Q20 with the two largest regions, China and the U.S., delivering the highest annual growth rates at 60.5% and 36.9% respectively. 
  • In all regions except Central & Eastern Europe and the Middle East & Africa, growth in public cloud infrastructure exceeded growth in private cloud IT.
  • At the vendor level, the results were mixed. Inspur more than doubled its revenue from sales to cloud environments, climbing into a tie* for the second position in the vendor rankings while the group of original design manufacturers (ODM Direct) grew 63.6% year over year. Lenovo's revenue exceeded $1 billion, growing at 49.3% year over year.


Tuesday, September 8, 2020

IDC: Worldwide server market grew 19.8% YOY in Q2

Vendor revenue in the worldwide server market grew 19.8% year over year to $24.0 billion during the second quarter of 2020 (2Q20) while worldwide server shipments grew 18.4% year over year to nearly 3.2 million units in 2Q20, according to IDC's Worldwide Quarterly Server Tracker.

"Global demand for enterprise servers was strong during the second quarter of 2020," said Paul Maguranis, senior research analyst, Infrastructure Platforms and Technologies at IDC. "We certainly see areas of reduced spending, but this was offset by investments made by large cloud builders and enterprises targeting solutions that support shifting infrastructure needs caused by the global pandemic. Investments in Asia/Pacific were also particularly strong, growing 31% year over year."

Some highlights from IDC:


  • In terms of server class, volume server revenue was up 22.1% to $18.7 billion, while midrange server revenue declined 0.4% to about $3.3 billion and high-end systems grew by 44.1% to $1.9 billion.
  • The worldwide server market ended 2Q20 with a statistical tie* between, and Dell Technologies for the number 1 position. HPE/New H3C Group finished the quarter with market share of 14.9% while Dell Technologies captured a 13.9% share of worldwide revenues. Inspur/Inspur Power Systems took third place with 10.5% share and impressive 77% year-over-year growth. Lenovo and IBM tied* for fourth with 6.1% and 6.0% share, respectively.
  • On a geographic basis, the Asia/Pacific region performed very well this quarter growing at a combined 31.%. China outperformed the competitive set, growing 39.8% year over year, followed by Japan at 24.9%, and the rest of the region (Asia/Pacific excluding Japan and China) at 13.4%. The United States also grew 25.0% year over year while Canada declined 11.2%. Latin America was able to grow 15.6% while Europe, the Middle East and Africa (EMEA) declined 5.8% year over year.
  • Revenue generated from x86 servers decreased 17.4% in 2Q20 to $21.6 billion. Non-x86 servers grew revenues 47.4% year over year to around $2.4 billion.



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Thursday, September 3, 2020

IDC: Ethernet switch market drops 6.3% in Q2

The worldwide Ethernet switch market recorded $6.6 billion in revenue in the second quarter of 2020 (2Q20), a decrease of 6.3% year over year, according to IDC's Quarterly Ethernet Switch Tracker and IDC Quarterly Router Tracker, while worldwide total enterprise and service provider (SP) router market revenues recorded a slight year-over-year gain, with a 0.1% increase in 2Q20 to nearly $4.0 billion.

"In addition to there being varying trends across the enterprise, hyperscale, and service provider segments of both the Ethernet switch and router markers, there is also significant variation in second quarter results based on geography," noted Petr Jirovsky, research director, IDC Networking Trackers. "Regions of the world where the COVID-19 pandemic subsided in the second quarter saw increases in their markets, while the response to the virus was ramping up during this period in parts of Europe and the Americas, representing a headwind."

"Softness in the Ethernet switch market in the first quarter of 2020 continued into the second quarter, driven primarily by the continued impact of the COVID-19 pandemic, which led to the lockdown of most economies worldwide," says Brad Casemore, research vice president, Datacenter and Multicloud Networks at IDC. "Despite the headwinds of COVID-19, the Ethernet switch market stayed relatively healthy, most notably because of steady demand from hyperscalers and other cloud providers, which continue to invest in greater datacenter scale and higher bandwidths."

Some Ethernet switch highlights from IDC:


  • From a geographic perspective, the Ethernet switch market saw year-over-year reductions in most global regions. A bright spot was China, which recorded a 25.4% year-over-year increase in 2Q20. The broader Asia/Pacific region (excluding Japan and China) fell by 6.7% year over year with Hong Kong's Ethernet switch market dropping 35.8%. Japan's market was off 3.0% from a year earlier. There was also weakness across Europe and the Americas. Western Europe's Ethernet switch market fell 13.1%, with the United Kingdom off 23.4% from a year earlier and France losing 20.5%. Central and Eastern Europe was down 7.6% with Hungary losing 20.1% year over year while the Czech Republic grew 17.6%. The Middle East and Africa region fell 7.5% with Qatar declining 17.1% but Israel gaining 7.6%. In the Americas, the United States was down 12.5% while Canada lost 16.5%. The Latin America region fell 22.1% with Mexico losing 21.6% compared to a year earlier.
  • Port shipments for 100Gb switches rose 51.2% year over year to 6.7 million units. 
  • 100Gb revenues grew 16.3% year over year in 2Q20 to nearly $1.5 billion, making up 22.4% of the market's overall revenue. 
  • 25Gb switches also saw impressive growth with revenues increasing 39.0% to $505.9 million and port shipments growing 62.2%. 
  • Lower-speed campus switches, a more mature part of the market, saw mixed results in port shipments and revenue as average selling prices (ASPs) in this segment continue to decline. 
  • 10Gb port shipments rose 23.1% year over year, but revenue declined 6.1%. 10Gb switches make up 28.0% of the market's total revenue. 1Gb switches declined 10.1% year over year in port shipments and fell 17.9% in revenue. 1Gb now accounts for 35.0% of the total Ethernet switch market's revenue.


Some router market highlights from IDC:

  • The worldwide enterprise and service provider router market increased 0.1% on a year-over-year basis in 2Q20, with the major service provider segment, which accounts for 76.9% of revenues, growing 1.5% and the enterprise segment of the market declining 4.2%. 
  • From a regional perspective, the combined service provider and enterprise router market grew 18.1% year over year in China and was up 20.2% in Japan. The broader Asia/Pacific region (excluding Japan and China) fell 5.6% year over year. Revenues in Western Europe were off 10.4%, while the Central and Eastern Europe combined enterprise and service provider market declined 8.7%. The Middle East & Africa region was down 5.7% year over year. In the United States, the enterprise segment was down 12.0%, while service provider revenues fell 5.9%, giving the combined markets a 7.5% year over year drop. The Latin American market declined 2.6% on an annualized basis.
  • Cisco finished 2Q20 with a 13.4% year-over-year decline in overall Ethernet switch revenues and market share of 47.2%. In the hotly contested 25Gb/100Gb segment, Cisco is the market leader with 35.7% of the market's revenue. Cisco's combined service provider and enterprise router revenue was down 9.6%, with enterprise router revenue decreasing 11.8% and SP revenues down 8.1% year over year. Cisco's combined SP and enterprise router market share stands at 33.2%.
  • Huawei's Ethernet switch revenue rose 15.7% on an annualized basis, giving the company market share of 12.0%. The company's combined SP and enterprise router revenue increased 16.7% year over year, giving the company a market share of 36.3%.
  • Arista Networks saw Ethernet switch revenues decline 17.9% in 2Q20, bringing its share to 6.4% of the total market. 100Gb revenues account for 72.4% of the company's total revenue, reflecting the company's longstanding presence at cloud providers and large enterprises.
  • HPE's Ethernet switch revenue declined 17.3% year over year, giving the company a market share of 5.1%.
  • Juniper's Ethernet switch revenue fell 8.2% in 2Q20, bringing its market share to 2.8%. Juniper saw a 3.3% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.2%.

Wednesday, September 2, 2020

IDC: Worldwide Enterprise WLAN market dips

The combined consumer and enterprise worldwide wireless local area network (WLAN) market segments rose 7.1% year over year in 2Q20, according to IDC's Worldwide Quarterly Wireless LAN Tracker, although the enterprise segment declined 9.5% year over year in 2Q20 with $1.4 billion in revenue. IDC attributes the decline to the impact of the COVID-19 pandemic on the enterprise WLAN market.

Some highlights from IDC:

  • Revenues for the enterprise class of WLAN infrastructure have now declined 6.1% in the first half of 2020 compared to the same period a year earlier.
  • Wi-Fi 6-enabled dependent access points (APs) made up 28.9% of revenues, up from 21.8% in the first quarter of 2020 and indicating significant adoption of the newest WLAN standard in the enterprise market. 
  • Wi-Fi 6 units accounted for 16.8% of shipments, up from 11.8% in the previous quarter. The Wi-Fi 5 standard (802.11ac) still makes up the majority of dependent AP shipments (75.6%) and revenues (69.4%). Overall unit shipments in the enterprise WLAN market fell 6.4% compared to 2Q19.
  • The consumer WLAN market grew 20.3% year over year in 2Q20. W
  • ithin the consumer market, 60.2% of shipments and 73.7% of revenues were for 802.11ac products. 
  • 802.11ax units made up 3.6% of shipments and 9.5% of revenues, showing the slow adoption of Wi-Fi 6 in the consumer market. 
  • APs supporting the older 802.11n standard still made up 36.2% of unit shipments and 16.8% of revenues.
  • Cisco's enterprise WLAN revenues decreased 10.9% year over year in 2Q20 to $626 million. In the first half of 2020, Cisco's revenues are down 8.9% compared to the first half of 2019. Cisco remains the market share leader, finishing the quarter with 44.3% share, down from 45.7% in 1Q20.
  • HPE-Aruba revenues fell 17.1% year over year in 2Q20 and the company's market share stood at 12.8%.
  • Ubiquiti enterprise WLAN revenues fell 5.0% year over year. The company's market share was 7.1%, down from 9.5% in the previous quarter.
  • CommScope (formerly ARRIS/Ruckus) revenues declined 22.8% year over year in 2Q20. The company held 4.9% market share in the quarter.
  • Huawei's revenues rose 2.5% year over year in 2Q20 and its market share rose to 6.1% from 3.8% in the previous quarter (1Q20).

"Organizations around the globe were forced to rapidly adjust their operations in response to the COVID-19 outbreak, leading some organizations to pause investments in WLAN equipment," says Brandon Butler, senior research analyst, Network Infrastructure. "Wireless connectivity can play an important role in the new normal operations of enterprises though. From providing connectivity for cloud-based and communication applications, to enabling the ability to alert and enforce social distancing rules, IDC believes wireless networking will remain an important part of enterprise IT buying plans in the coming years."

Sunday, June 28, 2020

IDC predicts 2.8% decline in Worldwide Services Market

IDC is now forecasting a 2.8% decline in worldwide IT services and business services this year due to COVID-19, however, the forecast is calling for a 1% to 1.4% uptick in 2021.

In April, IDC predicted this market would decline 1.1% in 2020, so the new forecast is more pessimistic.

IDC said the newest forecast is based on the Economist Intelligence Unit's May forecast for worldwide GDP in 2020, which will likely contract by around 4.4%, more than twice as much as the March forecast. After almost four months of shutdowns across most developed markets, the economic downturn in the first half of 2020 will be so severe that even a robust recovery in the next six months will not offset it.

"Over the last few months of shutdowns around the world, services providers have largely shifted clients' core IT and business operations to 'work from home' environments relatively overnight without major hiccups," said Lisa Nagamine, research manager with IDC's Worldwide Semiannual Services Tracker. "This further demonstrates how adaptive and resilient vendors and buyers can be in the 'digital age'."

"We will continue to see the services market growth outpace GDP growth, even during a crisis like this," said Xiao-Fei Zhang, program director, Global Services Markets and Trends. "The pandemic is clamping down on discretionary spending, and puts the brake on many projects for now, but this will be somewhat cushioned by managed services and support services contracts that support core operations of large enterprises and government agencies."

Some additional highlights from IDC:

  • The Americas services markets are now forecast to decline 2.5% year over year in 2020, compared to the March forecast of nearly flat growth. 
  • IDC lowered the US growth forecast to -2.7% in 2020. The project-oriented markets, particularly business consulting, bore the brunt as large US consultancies have already announced workforce reductions worldwide. 
  • IDC also tempered the 2020 outlook for managed services by roughly 1%, now down 1.6%. The outlook for the support services market is unchanged and remains at -1.0% with growth in hardware and software support offset by sharp declines in training and education. 
  • Services markets in Canada also saw a sharper decline in 2020 and weaker recovery is expected across most foundation markets in the coming years, reflecting the gloomier economic outlook as the shutdown drags on. 
  • Latin America will continue to grow but will slump to less than 2% for 2020 with the outlook remaining unchanged from the March forecast.
  • Western Europe will decline 5.2% year over year in 2020 moved downward by almost one percentage point from the March forecast.
  • Central & Eastern Europe's 2020 short-term outlook was lowered while the mid- and long-term growth improved. 
  • The Middle East & Africa market will contract by more than 5% in 2020 as major markets in the region are also flanked by shutdowns and the collapse in oil prices. 
  • Japan will contract this year by 2.8% in 2020, revised downward by more than 1 percentage point with more economic metrics, such as weaker consumer spending in April and May, pointing to a weaker economy. 
  • IDC still expects the China market to deliver growth of 2.7% for 2020.


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Thursday, June 25, 2020

IDC: Cloud IT infrastructure spending up 2% in Q1

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, increased 2.2% in the first quarter of 2020 (1Q20) while investments in traditional, non-cloud, infrastructure plunged 16.3% year over year, according to IDC's newly updated Worldwide Quarterly Cloud IT Infrastructure Tracker.

COVID-19 was the major factor driving infrastructure spending in the first quarter, said IDC, as widespread lockdowns across the world and staged reopening of economies triggered increased demand for cloud-based consumer and business services. This led to additional demand for server, storage, and networking infrastructure utilized by cloud service provider datacenters. As a result, public cloud was the only deployment segment escaping year-over-year declines in 1Q20 reaching $10.1 billion in spend on IT infrastructure at 6.4% year-over-year growth. Spending on private cloud infrastructure declined 6.3% year over year in 1Q to $4.4 billion.


Some highlights:

  • The pace set in the first quarter will continue through rest of the year as cloud adoption continues to get an additional boost driven by demand for more efficient and resilient infrastructure deployment. 
  • For the full year, investments in cloud IT infrastructure will surpass spending on non-cloud infrastructure and reach $69.5 billion or 54.2% of the overall IT infrastructure spend. 
  • Spending on private cloud infrastructure is expected to recover during the year and will compensate for the first quarter declines leading to 1.1% growth for the full year. 
  • Spending on public cloud infrastructure will grow 5.7% and will reach $47.7 billion representing 68.6% of the total cloud infrastructure spend.
  • Compute platforms will remain the largest category of spending on cloud IT infrastructure at $36.2 billion 
  • Storage platforms will be fastest growing segment with spending increasing 8.1% to $24.9 billion. 
  • The Ethernet switch segment will grow at 3.7% year over year.
  • At the regional level, year-over-year changes in vendor revenues in the cloud IT Infrastructure segment varied significantly during 1Q20, ranging from 21% growth in China to a decline of 12.1% in Western Europe.


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