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

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.



https://www.idc.com/getdoc.jsp?containerId=prUS46838120

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.


https://www.idc.com/getdoc.jsp?containerId=prUS46637720

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.


https://www.idc.com/getdoc.jsp?containerId=prUS46639820

Sunday, June 21, 2020

IDC: Worldwide converged systems market grows 4.5%

The worldwide converged systems market revenue increased 4.5% year over year to $3.9 billion during the first quarter of 2020 (1Q20), according to a new report from IDC.

IDC's converged systems market view offers three segments: certified reference systems & integrated infrastructure, integrated platforms, and hyperconverged systems.

  • The certified reference systems & integrated infrastructure market generated just over $1.4 billion in revenue during the first quarter, which represents growth of 4.4% year over year and accounts for 36.8% of all converged systems revenue. 
  • Integrated platforms sales declined 8.7% year over year in 1Q20, generating $478 million worth of revenue. This amounted to 12.3% of the total converged systems market revenue. 
  • Sales of hyperconverged systems grew 8.3% year over year during the first quarter of 2020, generating just under $2.0 billion worth of revenue. This amounted to 50.9% of the total converged systems market.

As it relates to the branded view of the hyperconverged systems market, Dell Technologies was the largest supplier with $666.3 million in revenue and a 33.6% share. Nutanix generated $260.0 million in branded hardware revenue, representing 13.1% of the total HCI market during the quarter. Hewlett Packard Enterprise finished the quarter in the number 3 spot with $118.7 million in revenue, which amounted to a 6.0% share.


Tuesday, June 9, 2020

IDC: Worldwide server market revenue dips 6% in Q1

Vendor revenue in the worldwide server market declined 6.0% year over year to $18.6 billion during the first quarter of 2020 (1Q20), according to a new report from IDC. Worldwide server shipments declined 0.2% year over year to just under 2.6 million units in 1Q20.

In terms of server class, volume server revenue was down 2.1% to $15.1 billion, while midrange server revenue declined 23.0% to just under $2.6 billion, and high-end systems declined by 9.1% to just under $1.0 billion.



"Server market performance was relatively similar to the fourth quarter, albeit a bit more muted, with bright spots including the ODM Direct vendor group realizing solid demand from its core hyperscaler and cloud provider customer set, and continued strength in the non-x86 server space," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "That said, the OEM market faced stiff headwinds due to a combination of slowing enterprise demand for x86 servers and supply chain constraints, both driven largely by macroeconomic impacts."

Some highlights:

  • The number one position in the worldwide server market in 1Q20 belonged to Dell Technologies with a revenue share of 18.7%. 
  • HPE/New H3C Group took the second position at 15.5%, followed by Inspur/Inspur Power Systems at 7.1%. 
  • Lenovo and IBM were tied for the fourth position with market shares of 5.6% and 4.8%, respectively. 
  • The ODM Direct group of vendors accounted for 25.9% of total server revenue and was up 6.1% year over year to nearly $4.83 billion. 
  • Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 18.4% of all units shipped during the quarter.

https://www.idc.com/getdoc.jsp?containerId=prUS46534520

Sunday, June 7, 2020

IDC: Worldwide Ethernet Switch and Router markets decline in Q1

The Worldwide Ethernet switch market recorded $6.16 billion in revenue in the first quarter of 2020 (1Q20), a decrease of 8.9% year over year, according to a new report from IDC, while the worldwide total enterprise and service provider (SP) router market revenues fell 16.4% year over year in 1Q20 to $2.99 billion.

"Weakness in the Ethernet switch and routing markets at the end of 2019 continued into the first quarter of 2020, which was exacerbated by the onset of the novel coronavirus and subsequent lockdown of economies around the globe as 1Q20 progressed," said Brad Casemore, research vice president, Datacenter and Multicloud Networks. "Meanwhile, diverging trends intensify in the Ethernet switch market as hyperscale and cloud providers invest in greater datacenter scale and higher bandwidths while enterprises continue to refresh campus networks with lower-speed switch ports."



Some highlights from IDC Quarterly Ethernet Switch Tracker and IDC Quarterly Router Tracker:


  • Despite the Ethernet switch market growing 2.3% for the full year 2019, in the fourth quarter of 2019 the market fell 2.2%, indicating that the market's slow end to 2019 spilled into 1Q20. The first quarter of 2020 was also impacted by the COVID-19 pandemic that swept across the world throughout the quarter, specifically disrupting supply chains while weakening customer demand. IDC expects the negative impact of COVID-19 on both the Ethernet switch and router markets to continue in the second quarter of 2020.
  • From a geographic perspective, the Middle East and Africa (MEA) region declined 2.9%, with Saudi Arabia's market off 12.7% year over year. Across Europe, growth was uneven. The Central and Eastern Europe (CEE) region grew 3.7% compared to a year earlier, with Russia up 23.2% year over year. The Western Europe market fell 12.9% with Germany losing 10.6% year over year and the United Kingdom off 18.4% from a year earlier.
  • The Asia/Pacific region (excluding Japan and China) (APeJC) declined 7.0% year over year, with India off 11.3% and Australia declining 16.2% year over year. The People's Republic of China was down 14.6% year over year while Japan was relatively flat with a 0.1% increase compared to the first quarter of 2019. The Latin American market dropped 9.7% year over year, while the market in the United States declined 8.7% annually and Canada fell 7.2% year over year.
  • Port shipments for 100Gb switches rose 52.1% year over year to $5.5 million. 100Gb revenues grew 9.9% year over year in 1Q20 to $1.28 billion, making up 20.8% of the market's revenue. 25Gb switches also saw impressive growth, with revenues increasing 58.9% to $482.9 million and port shipments growing 67.7% year over year. 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 3.9% year over year, but revenue declined 21.4%. 10Gb switches make up 24.8% of the market's total revenue. 1Gb switches declined 3.8% year over year in port shipments and fell 11.9% in revenue.1Gb now accounts for 39.0% of the total Ethernet switch market's revenue.
  • The worldwide enterprise and service provider router market decreased 16.4% on a year-over-year basis in 1Q20, with the major service provider segment, which accounts for 75.1% of revenues, decreasing 16.8% and the enterprise segment of the market declining 15.3%. From a regional perspective, the combined service provider and enterprise router market fell 29.4% in APeJC. Japan's total market grew 8.4% year over year and the People's Republic of China market was off 10.9%. Revenues in Western Europe declined 23.5% year over year, while the combined enterprise and service provider market in the CEE region declined 17.1%. The MEA region was down 5.2%. In the U.S., the enterprise segment was down 12.2%, while service provider revenues fell 19.6%, giving the combined markets a year-over-year drop of 17.5%. The Latin America market declined 15.9% on an annualized basis.
  • Cisco finished 1Q20 with a 12.0% year-over-year decline in overall Ethernet switch revenues and market share of 51.9%. In the hotly contested 25Gb/100Gb segment, Cisco is the market leader with 39.8% of the market's revenue. Cisco's combined service provider and enterprise router revenue declined 28.1% year over year, with enterprise router revenue decreasing 18.7% and SP revenues falling 33.8%. Cisco's combined SP and enterprise router market share stands at 36.3%.
  • Huawei's Ethernet switch revenue declined 14.0% on an annualized basis, giving the company a market share of 8.4%. The company's combined SP and enterprise router revenue declined 2.1% year over year, resulting in a market share of 28.8%.
  • Arista Networks saw its Ethernet switch revenues decline 18.7% in 1Q20, bringing its share to 6.7% of the total market. 100Gb revenues account for 73.7% of the company's total revenue, reflecting the company's longstanding presence at hyperscalers and other cloud providers.
  • HPE's Ethernet switch revenue increased 6.7% year over year, giving the company a market share of 6.2%, up from 5.3% market share the same quarter a year earlier.
  • Juniper's Ethernet switch revenue rose 14.1% year over year in 1Q20, bringing its market share to 3.3%. Juniper saw a 16.0% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.5%.

Wednesday, June 3, 2020

IDC: Enterprise WAN market dips in Q1

The combined consumer and enterprise worldwide wireless local area network (WLAN) market segments rose 2.3% year over year in the first quarter of 2020 (1Q20), according to IDC'S Worldwide Quarterly WLAN Tracker. However, The enterprise segment fell 2.2% year over year in 1Q20 with $1.3 billion in revenue.

A driver for the enterprise WLAN market is the new Wi-Fi 6 standard, also known as 802.11ax. Across the enterprise market, Wi-Fi 6-supported dependent access points (APs) made up 11.8% of unit shipments and 21.8% of revenues. The previous generation standard, 802.11ac, still made up the majority of shipments (80.9%) and revenues (76.2%).

Meanwhile, the consumer WLAN market grew 5.5% year over year in 1Q20. Within the consumer market, 62.5% of shipments and 79.4% of revenues were for 802.11ac products. APs supporting the older 802.11n standard still made up 36.9% of unit shipments and 17.6% of revenues, not surprising given the price sensitivity seen across many emerging markets.

"Wireless connectivity remains an important technology for organizations around the world as more users and devices than ever rely on mobile devices to connect to bandwidth-intensive applications," said Brandon Butler, senior research analyst, Network Infrastructure at IDC. "The WLAN market is not immune to the impacts from the COVID-19 pandemic that has been sweeping across the world over the last few months. Results from the market's first quarter of 2020 show the early effect of the pandemic and subsequent lockdown, which will continue to impact the market into the second quarter of 2020."

https://www.idc.com/getdoc.jsp?containerId=prUS46481820

Monday, June 1, 2020

IDC: OCP-compliant hardware to grow at a 16.6% CAGR

Worldwide revenue from the Open Compute Project (OCP) infrastructure market will reach $33.8 billion in 2024, according to a new report from IDC, hitting a compound annual growth rate (CAGR) of 16.6% over the 2020-2024 forecast period. The forecast assumes a rapid recovery for this market in 2021-22, fueled by a robust economic recovery worldwide. However, a prolonged crisis and economic uncertainty could delay the market's recovery well past 2021, although investments in and by cloud service providers may dominate infrastructure investments when they occur during this period.

"By opening and sharing the innovations and designs within the community, IDC believes that OCP will be one of the most important indicators of datacenter infrastructure innovation and development, especially among hyperscalers and cloud service providers," said Sebastian Lagana, research manager, Infrastructure Systems, Platforms and Technologies.

"IDC projects massive growth in the amount of data generated, transmitted, and stored worldwide. Much of this data will flow in and out of the cloud and get stored in hyperscale cloud data centers, thereby driving demand for infrastructure," said Kuba Stolarski, research director, Infrastructure Systems, Platforms and Technologies at IDC.

Some highlights:
The compute segment will remain the primary driver of overall OCP infrastructure revenue for the coming five years, accounting for roughly 83% of the total market.
Despite being a much larger portion of the market, compute will achieve a CAGR comparable to storage through 2024. The compute and storage segments are defined below:
Spend on computing platforms (i.e., servers including accelerators and interconnects) is estimated to grow at a five-year CAGR of 16.2% and reach $28.07 billion. This segment includes externally attached accelerator trays also known as JBOGs (GPUs) and JBOFs (FPGAs).
Spend on storage (i.e., server-based platforms and externally attached platforms and systems) is estimated to grow at a five-year CAGR of 18.5% and reach $5.73 billion. Externally attached platforms are also known as JBOFs (Flash) and JBODs (HDDs) and do not contain a controller. Externally attached systems are built using storage controllers.

Monday, May 18, 2020

IDC: Limited COVID-19 impact to global telecom service spending

IDC is predicting that worldwide spending on telecommunications and pay TV services will reach nearly $1.6 trillion in 2020, a decrease of 0.8% compared to 2019, indicating only a limited impact from the COVID-19 pandemic. IDC expects the decline to continue in 2021, but at a somewhat lower degree.

Some highlights from IDC:

  • The mobile segment, the largest segment of the market, will post a slight decline in 2020 due to lower revenues from roaming charges, less mobile data overages due to the stay-at-home situation, and slower net additions, especially in the consumer segment. 
  • Fixed data services spending will increase by 2.9% in 2020 as the need for more fixed Internet connectivity determined by the "great lockdown" is likely to help this segment maintain growth. 
  • Spending on fixed voice services will continue to decline and will take an additional hit due to the pandemic as users will likely drop fixed voice services for savings purposes. 
  • Fixed IP voice will survive longer as the service is included in bundles in most cases. 
  • Pay TV services will be boosted by the lockdown, but also affected by the economic downturn, so the spending in this category is expected to decline slightly.
  • In 2020, telecom services spending will drop in all geographic regions. 
  • The largest market, the Americas, will see a tiny decline of 0.04%. Europe, the Middle East, and Africa (EMEA) and Asia/Pacific (including Japan) will dip more primarily because of the larger price-sensitive audience in the low-income countries of Africa and Asia. 
  • Growth is not expected in EMEA or Asia/Pacific before 2022 as the users in emerging markets are expected to remain cautious about spending for some time.

Monday, May 4, 2020

IDC predicts 5.1% dip in IT spending, growth for infrastructure

Due to the COVID-19 pandemic, IDC lowered its forecast for global IT spending, saying it now expects a decline of 5.1% in constant currency terms this year to $2.25 trillion.

A new update to the IDC Worldwide Black Book Live Edition shows ICT spending, which includes telecom and business services, will decline by 3.4% this year to just over $4 trillion with telecom spending down 0.8%. However, IT infrastructure spending is still projected to grow overall by almost 4% to $237 billion with resilient spending by service providers in addition to ongoing enterprise demand for cloud services offsetting declines in business capital spending.


"Inevitably a major economic recession, in Q2 especially, will translate into some big short-term reductions in IT spending by those companies and industries that are directly impacted," said Stephen Minton, program vice president in IDC's Customer Insights & Analysis group. "Some firms will cut capital spending and others will either delay new projects or seek to cut costs in other ways. But there are also signs that some parts of the IT market may be more resilient to this economic crash in relative terms than previous recessions with technology now more integral to business operations and continuity than at any time in history."

Some additional highlights from IDC:

  • Overall spending on devices including PCs and phones will be down significantly this year and is the main drag on total IT spending with the economic fallout likely to disrupt upgrade cycles for smartphones, which were expected to be boosted by the launch of premium 5G devices. The PC market was already expected to decline this year after a commercial refresh cycle in 2019, leaving discretionary upgrades to new notebooks and tablets extremely vulnerable to any period of economic decline.
  • Infrastructure spending, on the other hand, is still expected to post moderate growth overall as businesses continue to fund existing cloud deployments while some may even look to accelerate their cloud projects during the remainder of the year as a means to control costs and defer capital spending on upgrades to on-premise datacenters and applications.
  • IT services spending will decline, mostly due to delays in big new projects, but a large portion of services revenue will be relatively protected from spending cuts where it relates to the management, support, and operations of technology, which is now fundamental to business performance and viability. At the same time, many companies are also reluctant to reverse course on digital transformation, which is central to business strategy.
  • Telecom spending will decline by almost 1%, which is relatively stable compared to other types of technology investments. Carriers will continue to invest in 5G network deployments in many countries, while the lockdown has increased demand for fixed broadband services in the short term. The economic fallout will put some macro pressure on consumer spending, including upgrades to 5G mobile contracts, in the second half of 2020, but the overall impact on telecom spending will be moderate compared to other ICT markets.

The latest IT spending forecast from the Worldwide Black Book will be covered during an IDC webinar to be held May 7, 2020 at 11:00 am U.S. Eastern time. Stephen Minton will review the current outlook for technology markets in the context of the COVID-19 impact, alongside an in-depth review of the industry impact led by Jessica Goepfert. Additional details and registration can be found at https://bit.ly/3cjMm4w

Tuesday, April 21, 2020

IDC predicts drop in IT spending in nearly every industry in 2020

IDC is predicting that worldwide IT spending to decline 2.7% this year due to the economic impact of the COVID-19 pandemic, with certain industry segments such as hospitality and tourism-heavy industries, like transportation and personal and consumer services, expected to be the most negatively impacted markets. IT spending in such segments are expected to decline by 5% or more.

However, IDC is forecasting that more "recession resistant" segments, like government, will fare a bit better. IT spending in the healthcare and telecommunications segments are also forecast to grow slightly as they respond to new demands presented by the pandemic. Professional services will see the strongest growth in IT spending this year with an expected year-over-year increase of 1.7%.

"While industries that offer digitally-enabled or critical services offer some bright spots, those industries that rely on physical products, an in-person presence, or provide luxury services are struggling," said Jessica Goepfert, program vice president, Customer Insights & Analysis. "Once the near-term reprioritization is underway, the next step is to understand the path to recovery. For instance, industries which have suffered major shutdowns and layoffs will be slower to invest in technology than those that have been able to maintain somewhat normal operations. In order to mitigate risk and exposure to the economic downturn, technology suppliers must reprioritize and refocus their efforts toward the more resilient segments."

Some additional predictions:

  • Small offices (less than 10 employees) and small businesses (10-99 employees) will see the biggest percentage reduction in IT spending this year at 4.9% and 2.7% respectively. 
  • Large businesses (500-999 employees) and very large businesses (more than 1,000 employees) represent a much larger market opportunity. 
  • Both segments are forecast to see IT spending fall by more than 1% this year representing a drop of $17 billion.
  • Hardware will see the largest decline with spending expected to decline more than 5% this year as companies pull back on most near-term infrastructure investments. 
  • IT services and business services will see a more moderate reduction in spending as companies focus on keeping their existing operations and mission-critical projects going. 
  • Software will be the bright spot in technology spending, with growth of nearly 2% led by purchases of collaborative applications and content workflow and management applications.


"As a consequence of the coronavirus outbreak, market conditions are changing fast, driven by daily developments in the pandemic and the response that governments are putting into place," said Serena Da Rold, program manager, Customer Insights & Analysis. "IDC is supporting clients with more frequent updates to our forecasts across technologies, geographies, industries, and segments. In the April (V1 2020) release, we have provided our first assessment of COVID-19 impact by industry and company size across 120 technologies in 53 countries. The next special release of IDC's Worldwide ICT Spending Guide: Industry and Company Size is planned for the first week of May."

https://www.idc.com/getdoc.jsp?containerId=prUS46228020


Sunday, April 19, 2020

IDC: Flat projection for 2020 worldwide spending on telecom services due to COVID-19

International Data Corporation (IDC) expects telecommunication services spending to reach $1.6 billion in 2020 with nearly flat growth compared to 2019.

"COVID-19 is leading to a lot of uncertainty around the spending impact on various technology markets. We expect the telecom services market to weather the current conditions better than other elements of the ICT market," said Carrie MacGillivray, group vice president and general manager, Worldwide Telecom, Mobility, and IoT research at IDC. "The COVID-19 pandemic is highlighting the importance of connectedness. Telecom services are the common thread keeping us united as we weather this crisis."

The Covid-19 pandemic has impacted the market in several ways. On the positive side, IDC has observed increased use of telecom services due either to nationwide lockdown or work-from-home policies that many companies have implemented for their employees to follow. However, this doesn't directly translate into a surge in telecom spending due to many households having unlimited voice calls and unlimited Internet services.

Commercially, the spend is inhibited due largely to the harsh economic impact that a number of industries are enduring. Businesses are either faced with temporary shutdowns or are closed altogether. The continued transition to IP and cloud services with lower ARPU as well as the reduction in GDP growth in the second half of 2020 are key factors that challenge the market. From a mobile perspective, there will be an additional negative impact including slower net adds, especially in the consumer segment, as retail outlets are closed during lockdowns making it difficult to activate net new devices and plans.

IDC will be releasing a comprehensive breakdown of the telecommunication services market next month in its newly launched product, Worldwide Semiannual Telecom Services Tracker.

https://www.idc.com/getdoc.jsp?containerId=prUS46222120

Thursday, April 2, 2020

IDC: Cloud infrastructure spending rose 12% in 4Q19

Total end-user spending on IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, recovered in the fourth quarter of 2019 (4Q19) after two consecutive quarters of decline, growing 12.4% year over year in Q4 2019 to $19.4 billion, according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker.

"While the beginning of 2020 was marked by supply chain issues that should be resolved before the end of the second quarter, the negative economic impact will hit enterprise customers' CAPEX spending," said Kuba Stolarski, research director, Infrastructure Systems, Platforms and Technologies at IDC. "As enterprise IT budgets tighten through the year, public cloud will see an increase in demand for services. This increase will come in part from the surge of work-from-home employees using online collaboration tools, but also from workload migration to public cloud as enterprises seek ways to save money for the current year. Once the coast is clear of coronavirus, IDC expects some of this new cloud service demand to remain sticky going forward."



IDC's new five-year forecast predicts cloud IT infrastructure spending* will reach $100.1 billion in 2024 with a compound annual growth rate (CAGR) of 8.4%. Non-cloud IT infrastructure spending will decline slightly to $65.3 billion with a -0.7% CAGR. Total IT infrastructure is forecast to grow at a 4.2% CAGR and produce $165.4 billion in spending in 2024.

Some highlights from IDC

The overall IT infrastructure market continued to struggle after its strong performance in 2018, up 3.3% to $38.1 billion in 4Q19 but declining 1.1% to $134.4 billion for the full year. Non-cloud IT infrastructure fell 4.6% to $18.7 billion for the quarter and declined 4.1% to $67.7 billion for the year.
Spending on cloud IT infrastructure in 4Q19 was driven by the public cloud segment, which grew 14.5% year over year to $13.3 billion; private cloud grew 8.2% to $6.1 billion.
IDC expects cloud IT infrastructure will stay above 50% of the IT Infrastructure market at both the quarterly and annual levels, reaching 60.5% annually in 2024.
Across the three IT infrastructure technology domains, storage platforms saw the fastest year-over-year growth in 4Q19 at 15.1% with spending reaching $6.6 billion. Compute platforms grew 14.5% year over year with $10.8 billion in spending while Ethernet switches declined 3.9% to $2.0 billion.
For the full year 2019, Ethernet switches led with year-over-year growth of 5.0% and $8.2 billion in spending, followed by storage platforms with 1.9% growth and spending of $23.1 billion, and compute platforms with growth of 1.5% and spending of $35.5 billion.
IDC's forecast for 2020, after taking into consideration the repercussions of the COVID-19 pandemic and its ensuing economic crisis, is for $69.2 billion in cloud IT infrastructure spending*, a 3.6% predicted annual increase over 2019. Non-cloud IT infrastructure spending is expected to decline 9.2% to $61.4 billion in 2020. Together, overall IT infrastructure spending is expected to decline 2.9% to $130.6 billion.

IDC cuts worldwide IT spending forecast by 2.7% due to COVID-19

Worldwide IT spending is now expected to decline 2.7% in constant currency terms this year as COVID-19 impacts the global economy and forces many organizations around the world to respond with contingency planning and spending cuts in the short term, according to IDC. In line with previous economic recessions, IT spending on hardware, software, and IT services is likely to decline by more than real GDP overall, as commercial IT buyers and consumers implement rapid cuts to capital spending in line with declining revenues, profits, market valuations, and employee headcounts.

"Overall IT spending will decline in 2020, despite increased demand and usage for some technologies and services by individual companies and consumers," said Stephen Minton, program vice president in IDC's Customer Insights & Analysis group. "Businesses in sectors of the economy that are hardest hit during the first half of the year will react by delaying some purchases and projects, and the lack of visibility related to medical factors will ensure that many organizations take an extremely cautious approach when it comes to budget contingency planning in the near term."

Spending on server/storage and network hardware will also decline overall despite strong demand for cloud services as enterprise customers delay purchases during the initial rapid response phase of the current crisis. Total infrastructure spending (including cloud) will increase by 5.3%, but all of this growth will come from enterprise spending on infrastructure as a service (IaaS) and cloud provider spending on servers. Meanwhile, overall server/storage hardware spending will be down by 3.3% and enterprise network equipment spending will decline by 1.7%.

"Hardware spending in general is always identified for rapid spending cuts during any economic crisis, as a means for enterprises to quickly protect short-term profitability," said Minton. "In previous economic crashes, IT hardware has tended to overshoot the economic cycle on both the downside and in the recovery phase. That's because underlying demand drivers don't change overnight, but the timing of purchases is shifted and delayed, and this can now be done even more quickly than in the past. What's different now is that cloud is a bigger factor than it was in any previous global recession, and this should mean that overall spending is less volatile than in the last two major IT spending downturns."

More: https://www.idc.com/getdoc.jsp?containerId=prUS46186120

Monday, March 30, 2020

IDC: COVID-19 impacts Server and Storage sales

The COVID-19 pandemic will impact spending on IT infrastructure.

According to the IDC Worldwide Quarterly Server Tracker and Worldwide Quarterly Enterprise Storage Systems Tracker, under the current probable scenario server market revenues will decline 3.4% year over year to $88.6 billion and external enterprise storage systems (ESS) revenues will decline 5.5% to $28.7 billion in 2020.

The server market is expected to decline 11.0% in Q1 and 8.9% in Q2 and then return to growth in the second half of the year. The external ESS market is forecast to decline 7.3% in Q1 and 12.4% in Q2 before returning to slight growth by the end of 2020 with further recovery expected in 2021.

"The impact of COVID-19 will certainly dampen overall spending on IT infrastructure as companies temporarily shut down and employees are laid off or furloughed," said Kuba Stolarski, research director, IT Infrastructure at IDC. "While IDC believes that the short-term impact will be significant, unless the crisis spirals further out of control, it is likely that this will not impact the markets past 2021, at which point we will see a robust recovery with cloud platforms very much leading the way."

In the longer term both markets will return to growth. The server market is expected to deliver a compound annual growth rate (CAGR) of 4.9% over the 2019-2024 forecast period with revenues reaching $116.6 billion in 2024. Meanwhile the external ESS market will see a five-year CAGR of 1.3% growing to $32.4 billion in 2024.

"The IT infrastructure markets are already going though a transformation and shifts in end user spending will bring an even faster changing IT buyer landscape," said Natalya Yezhkova, research vice president, IT Infrastructure. "While the current crisis brings tensions and uncertainty to the market, it also will push organizations to expedite adoption of technologies and IT delivery models that help with optimization of IT infrastructure resources."




Wednesday, March 18, 2020

IDC: The impact of COVID-19 on the semiconductor sector

International Data Corporation (IDC) has published a report that analyzes the impact of the COVID-19 pandemic on the global semiconductor market and presents several possible outcomes.

"The emergence of COVID-19 has brought with it travel bans and quarantines; massive slowing of the supply chain; uncertainty in the stock market; falling business confidence, and growing panic among the population," said Mario Morales, program vice president, Semiconductors and Enabling Technologies at IDC. "Despite the growing uncertainty and panic, technology suppliers must continue to focus on their long-term investments, maintain engagement with partners and prospects, and look to specific markets for stability. Emerging technologies like 5G, the Internet of Things, high-performance computing, and intelligent edge will be fundamental to an overall recovery by the technology sector."

The report provides a framework to evaluate the market impact through four scenarios that assess the range of possible outcomes. Each scenario is based on varying assumptions and severity of the impact to business for technology suppliers. For each scenario, a range of critical factors are assessed with a resulting updated forecast, presented with leading indicators to help clients navigate this emergency.

Some highlights:

  • There is nearly an 80% chance for significant contraction in worldwide semiconductor revenues in 2020, instead of a previously expected minor overall growth of 2%.
  • There is still a one-in-five chance that a fast, strong bounce back from COVID-19 in 2020 is possible.
  • On a global level, the COVID-19 crisis is just beginning, with too many variables to immediately craft a single forecast in response.
  • The impact to technology supply chains in China are significant, but the timing of the recovery is uncertain.



Saturday, March 14, 2020

IDC: Worldwide server market grew 7.5% in 4Q19

Vendor revenue in the worldwide server market grew 7.5% year over year to $25.4 billion during the fourth quarter of 2019 (4Q19), according to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker. Worldwide server shipments grew 14.0% year over year to just over 3.4 million units in 4Q19.

"While the server market recaptured growth during the fourth quarter, it was a bit of a mixed bag as robust hyperscaler demand benefited the ODM Direct vendor group, which combined with strong non-x86 server purchases to drive the broader market," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "While the OEM x86 market was tepid, it's worth noting that 4Q18 was one of the most challenging comparison periods in history, during which many OEMs generated double-digit growth and large revenue bases."



Some highlights:

  • The number one position in the worldwide server market in 4Q19 was shared by the combined HPE/New H3C Group and Dell Technologies with revenue shares of 16.3% and 15.7% respectively. 
  • HPE/New H3C Group revenues were down 3.4% year over year while Dell Technologies declined 9.9%. 
  • The third ranking server supplier during the quarter was IBM, generating 9.1% revenue share on growth of 17.6%. 
  • Inspur/Inspur Power Systems was fourth with 6.8% revenue share and year-over-year growth of 12.1%. 
  • Lenovo and Huawei were statistically tied* for the fifth position in the market with market shares of 5.6% and 5.1% respectively. 
  • Lenovo's revenues were down 2.6% year over year while Huawei grew its revenues 1.8% in 4Q19. 
  • The ODM Direct group of vendors accounted for 25.5% of total revenue and was up 37.9% year over year to $6.47 billion. 
  • Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 16.1% of all units shipped during the quarter.

Wednesday, March 11, 2020

IDC: Worldwide Ethernet switch sales dipped 2% in 4Q19

The worldwide Ethernet switch market (Layer 2/3) recorded $7.6 billion in revenue in the fourth quarter of 2019 (4Q19), a decline of 2.1% year over year, according to the International Data Corporation (IDC) Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker. For the full year 2019, the market recorded $28.8 billion in revenue for a year-over-year growth rate of 2.3%. Meanwhile, the worldwide total enterprise and service provider (SP) router market recorded $4.2 billion in revenue in 4Q19, a decrease of 7.7% on a year-over-year basis. For the full year 2019, the router market finished at $15.5 billion, essentially staying flat with an increase of 0.4% over 2018. These results are according to

"The Ethernet switch and router markets showed weakness in the final quarter of 2019, driven by a variety of factors. Macro-economic issues continued to impact the global economy from the ongoing trade war between the U.S. and China to growing clarity about Brexit. While the rise and spread of the novel coronavirus, COVID-19, did not impact these 4Q19 results, it will not ease these pressures in the early part of 2020 where we expect this softness to continue," said Rohit Mehra, vice president, Network Infrastructure at IDC. "Despite these headwinds, enterprises are still prioritizing investments in digital platforms in order to transform their businesses and keep pace with competitors, which will ultimately continue to buoy spending in the networking market over the long term."

Some highlights from IDC:

  • Growth in the Ethernet switch market continues to be driven by high speed switching platforms. 
  • 100Gb Ethernet switch revenues grew 24.7% year over year in the quarter and made up 18.3% of the market, down just slightly from 19.6% in the prior quarter. 
  • 100GbE shipments reached 5.8 million ports and $1.4 billion in revenue in 4Q19. 
  • 25GbE switch ports continue to see strong growth with port shipments rising 57.1% year over year in the quarter and up 7.4% sequentially. 
  • 10GbE port shipments grew 7.0% year over year while revenues decreased 13.0%. 10GbE made up 27.3% of all 2019 Ethernet switching revenues. 
  • 1Gb remains the primary connectivity technology for enterprise campus and branch deployments, driving 1Gb port shipments to 133.6 million in 4Q19, growing 4.1% year over year, and making up 67.8% share of all ports shipped in the quarter and 40.3% of Ethernet switching revenues.
  • The combined enterprise and service provider router market had mixed results across the world, with APeJ falling 12.4% year over year in 4Q19 and down 1.1% for the full year. 



Company highlights

  • Cisco's 4Q19 Ethernet switch revenues were down 6.4% year over year giving the company a 50.9% market share. For the full year 2019, Cisco switching revenues were flat, rising 0.1% over 2018. In the hotly contested 25GbE/100GbE segment, Cisco remains the market leader with 39.7% share in 4Q19. Cisco's combined service provider and enterprise router revenue fell 18.5% year over year in 4Q19 and was off 3.4% for the full year giving the company 37.2% share in 2019.
  • Huawei's Ethernet switch revenue grew 8.9% year over year in 4Q19 and was up 7.8% in 2019 compared to 2018. This gives Huawei 9.6% market share for the full year. Huawei's enterprise and SP router revenue fell 4.1% year over year in 4Q19 but rose 4.1% for the full year, giving the company 29.8% market share in 2019.
  • Arista Networks' Ethernet switching revenue fell 11.1% year over year in 4Q19 but rose 9.8% for the full year. 100GbE revenues for Arista cooled somewhat in 4Q19 falling 19.7% compared to 3Q19. Arista's market share in the broader Ethernet switch industry stood at 7.0% at the end of 2019, up from 6.5% year over year.
  • Hewlett Packard Enterprise's (HPE) Ethernet switch revenues were off 15.9% year over year in 4Q19. This contributed to a decline of 9.1% in annual revenues in 2019, putting the company's full-year market share at 5.4% compared to 6.1% at the end of 2018.
  • Juniper's Ethernet switch revenues rose 11.7% year over year in 4Q19 but were off 7.2% for the full year. Juniper's 4Q19 router revenues declined 4.6% year over year and were off 11.7% for the full year. The company finished 2019 with 13.2% market share in the service provider routing market, down from 14.7% in 2018.