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

Monday, March 18, 2019

IDC: Worldwide server market remains robust

Vendor revenue in the worldwide server market increased 12.6% year over year to $23.6 billion during the fourth quarter of 2018 (4Q18), according to a new report from IDC. Worldwide server shipments increased 5.0% year over year to just under 3.0 million units in 4Q18.

"Reduced demand from hyperscale companies created downward pressure on worldwide server market growth rates during the quarter," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "This was offset by increased server sales to enterprise customers and higher average selling prices (ASPs). Enterprises are buying richly configured servers to support resource intensive workloads, resulting in higher ASPs and pushing revenue growth higher than growth from unit shipments."



Highlights:

  • The overall server market continues to experience robust demand with 4Q18 marking the fifth consecutive quarter of double-digit revenue growth and its highest total revenue in a single quarter ever. 
  • Volume server revenue increased by 17.8% to $19.0 billion, while midrange server revenue grew 30.3% to $2.5 billion. High-end systems declined 28.3% to $2.1 billion.
  • Tied for the number one position in the worldwide server market during 4Q18 were Dell Inc., at 18.7% revenue share, and HPE/New H3C Group, with 17.8% revenue share, growing 20.4% and 10.5% year to year respectively. 
  • IBM was the third-ranked server supplier during the quarter capturing 8.3% of total server revenues. IBM's performance during the quarter excludes sales generated through the company's recently established partnership with Inspur Power Systems. 
  • Inspur/Inspur Power Systems and Lenovo tied for fourth with revenue shares of 6.6% and 6.2% respectively. Inspur/Inspur Power Systems increased its revenue 70.7% year over year and Lenovo increased its revenue 33.8% year over year. The ODM Direct group of vendors accounted for 20.1% of total revenue, up 11.6% year over year to $4.7 billion. This was an uncharacteristically low growth rate for this group of companies. 
  • Dell led the worldwide server market in terms of unit shipments, accounting for 19.4% of all units shipped during the quarter. 

https://www.idc.com/getdoc.jsp?containerId=prUS44905719


Tuesday, January 22, 2019

IDC: LTE Router/Gateway market to hit $1.9 billion in 2022

The LTE router/gateway market will grow from approximately $804.2 million in 2018 to $1.9 billion in 2022 at a compound annual growth rate (CAGR) of 27.4%, according to a new report from IDC. Regionally, North America will remain the largest consumer of LTE routers/gateways, but Asia/Pacific, including Japan and China, will grow the fastest over the forecast period supported by continued expansion and/or densification of macro LTE networks in the region.

"The enterprise LTE appliance market is seeing rapid uptake globally, prompting incumbent suppliers and new players to seek differentiation to demonstrate value. Some are focusing on the software layer, or wireless SD-WAN, while others are leaning on their technology heritage in addressing IoT requirements. Whatever the strategy, branch, mobile, and IoT are emerging as the three main use cases for LTE routers and gateways," said Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure.

IDC highlights three main use cases that LTE router/gateway suppliers are moving to address:

  • Branch connectivity: Products designed for stationary, onsite functionality are often integrated with LTE, WiFi, and wired functionality. In addition, solutions often incorporate enhanced security features (e.g., firewall, threat management). An overarching software-defined component, often delivered from the cloud, can be incorporated to deliver enhanced management and coordination.
  • Mobile connectivity: Mobile LTE routers are often affixed to vehicles, rail systems, or other "on the move objects" that require connectivity. An emerging use case is for public safety networks, including first-responder networks, where cellular connectivity can meet the stringent demand for mission-critical communications.
  • Internet of Things/M2M: These solutions, which can be gateways, often offer a base feature such as protocol conversion but may incorporate the advanced features included in branch and mobile solutions as well.


https://www.idc.com/getdoc.jsp?containerId=US44528618

IDC: 5G network infrastructure market to grow at 118% CAGR

The worldwide 5G network infrastructure market is expected to grow from approximately $528 million in 2018 to $26 billion in 2022, according to IDC's inaugural forecast for this market segment, and representing a compound annual growth rate (CAGR) of 118%.

The 5G network infrastructure market includes 5G RAN, 5G NG core, NFVI, routing and optical backhaul.

IDC expects 5G RAN to be the largest market sub-segment through the forecast period, in line with prior mobile generations.

In addition to 5G NR and 5G NG core, procurement patterns indicate communications service providers (SPs) will need to invest in adjacent domains, including backhaul and NFVI, to support the continued push to cloud-native, software-led architectures.

"Early 5G adopters are laying the groundwork for long-term success by investing in 5G RAN, NFVI, optical underlays, and next-generation routers and switches. Many are also in the process of experimenting with the 5G NG core. The long-term benefit of making these investments now will be when the standards-compliant SA 5G core is combined with a fully virtualized, cloud-ready RAN in the early 2020s. This development will enable many communications SPs to expand their value proposition and offer customized services across a diverse set of enterprise verticals through the use of network slicing," says Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure.

The report, Worldwide 5G Network Infrastructure Forecast, 2018-2022 (IDC #US44392218), presents IDC's inaugural forecast for the 5G network infrastructure market. Revenue is forecast for both the 5G RAN and 5G NG Core segments and each of the three related sub-segments (NFVI, Routing Backhaul, and Optical Backhaul). The report also provides a market overview, including drivers and challenges for communications service providers and advice for technology suppliers.

Thursday, January 10, 2019

IDC: Cloud infrastructure spending surged 47% yoy in 3Q18

Vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, grew 47.2% year over year in the third quarter of 2018 (3Q18), reaching $16.8 billion, according to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC also raised its forecast for total spending (vendor revenue plus channel mark-up) on cloud IT infrastructure in 2018 to $65.2 billion with year-over-year growth of 37.2%.

"The first three quarters of 2018 were exceptional for the IT Infrastructure market across all deployment environments and the increase in IT infrastructure investments by public cloud datacenters was especially strong driven by the opening of new datacenters and infrastructure refresh in existing datacenters," said Natalya Yezhkova, research director, IT Infrastructure and Platforms. "After such a strong year we expect some slowdown in 2019 as the overall market cools down and some cloud providers work through adjustments in their supply chain. However, IDC expects the shift in IT infrastructure spending toward cloud environments will continue."

Some highlights from IDC:

  • Quarterly spending on public cloud IT infrastructure has more than doubled in the past two years reaching $12.1 billion in 3Q18 and growing 56.1% year over year, while spending on private cloud infrastructure grew at half of this rate, 28.3%, reaching $4.7 billion. Since 2013, when IDC started tracking IT infrastructure deployments in different environments, public cloud has represented the majority of spending on cloud IT infrastructure and in 2018 IDC expects this share will peak at 68.8% with spending on public cloud infrastructure growing at an annual rate of 44.7%. Spending on private cloud will grow 23.3% year over year in 2018.
  • In 3Q18, for the first time, quarterly vendor revenues from IT infrastructure product sales into cloud environments surpassed revenues from sales into traditional IT environments, accounting for 50.9% of the total worldwide IT infrastructure vendor revenues, up from 43.6% a year ago. However, for the full year 2018, spending on cloud IT infrastructure will remain below the 50% mark at 47.4%. Spending on all three technology segments in cloud IT environments is forecast to deliver double-digit growth in 2018. Compute platforms will be the fastest growing at 59.1%, while spending on Ethernet switches and storage platforms will grow 18.5% and 20.4%, respectively.
  • The rate of growth for the traditional (non-cloud) IT infrastructure segment slowed down from the first half of the year to 14.8%, which is still exceptional for this market segment. For the full year, worldwide spending on traditional non-cloud IT infrastructure is expected to grow by 12.3% as the market goes through a technology refresh cycle, which will wind down by 2019. By 2022, we expect that traditional non-cloud IT infrastructure will only represent 42.4% of total worldwide IT infrastructure spending (down from 52.6% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.
  • All regions grew their cloud IT Infrastructure revenues by double digits in 3Q18. Revenue growth was the fastest in Asia/Pacific (excluding Japan) (APeJ) at 62.6% year over year, with China growing at an even higher rate of 88.7%. Other regions among the fastest growing in 3Q18 included Japan (48.2%), USA (44.2%), and Canada (43.4%).
  • Long-term, IDC expects spending on cloud IT infrastructure to grow at a five-year compound annual growth rate (CAGR) of 13.3%, reaching $88.6 billion in 2022 and accounting for 57.6% of total IT infrastructure spend. Public cloud datacenters will account for 66.3% of this amount, growing at an 13.6% CAGR. Spending on private cloud infrastructure will grow at a CAGR of 12.6%.


Sunday, December 16, 2018

IDC: Worldwide Industry Cloud revenue to reach $6.1 billion in 2018

Five large industry groups, including healthcare, public sector, finance, retail/wholesale, and manufacturing, are expected to spend a total of $37.5 billion on industry cloud solutions in 2018, according to the Worldwide Semiannual Industry Cloud Tracker from International Data Corporation (IDC). The report forecasts the overall market to reach $45.4 billion in 2019.

"IDC's latest forecast shows that industry cloud growth rates will continue to accelerate over the next three years, which is very unusual for multi-billion-dollar markets. This growth is being driven by rapidly-digitizing industries like healthcare, financial services, and manufacturing, where industry clouds are becoming the cornerstones for next-generation growth and innovation strategies," said Frank Gens, senior vice president & chief analyst at IDC.

Some highlights:

  • the U.S. will make up close to three-quarters of the overall market in 2018. 
  • Japan and China expected to grow the most year over year at 54% and 47% respectively. 
  • Other regions will also outperform their 2018 growth rates.
  • The healthcare provider market in the U.S. is expected to pass the $10 billion mark in 2018 for the first time while the Western Europe market for healthcare industry cloud is also forecast to hit a landmark in 2018 by crossing the $1 billion mark. 
  • Relative to all other regions, Japan can be considered a late adopter to industry cloud deploymen but will pass the $1 billion mark by 2022. 
  • China will pass the $1 billion mark by 2022. 


https://www.idc.com/getdoc.jsp?containerId=prUS44551518

Wednesday, December 12, 2018

IDC: Worldwide server market revenue surged 37.7% in Q3

Vendor revenue in the worldwide server market increased 37.7%, year over year to $23.4 billion during the third quarter of 2018 (3Q18) and worldwide server shipments increased 18.3% year over year to 3.2 million units, according to IDC Worldwide Quarterly Server Tracker. 

"The worldwide server market once again generated strong revenue and unit shipment growth due to an ongoing enterprise refresh cycle and continued demand from cloud service providers," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "Enterprise infrastructure requirements from resource intensive next-generation applications support increasingly rich configurations, ensuring average selling prices (ASPs) remain elevated against the year-ago quarter. At the same time, hyperscalers continue to upgrade and expand their datacenter capabilities."


Some highlights from IDC:


  • Demand for x86 servers increased 41.0% in 3Q18 to $21.8 billion in revenues. Non-x86 servers grew 3.9% year over year to $1.6 billion.
  • Volume server revenue increased by 40.2% to $20.0 billion, while midrange server revenue grew 39.4% to $2.0 billion. High-end systems grew 6.9% to $1.3 billion.
  • On a geographic basis, Asia/Pacific (excluding Japan) was the fastest growing region in 3Q18 with 46.5% year-over-year revenue growth. The United States grew 43.7% in the quarter while Europe, the Middle East and Africa (EMEA) grew 24.5%, Canada grew 20.0%, Japan grew 14.0%, and Latin America grew 7.7%. China saw its 3Q18 vendor revenues grow 67.1% year over year.

https://www.idc.com/getdoc.jsp?containerId=prUS44532818

Tuesday, December 11, 2018

IDC: Ethernet switch market up 8.1%; Router market down 5.1% in 3Q18

The Worldwide Ethernet switch market (Layer 2/3) recorded $7.3 billion in revenue in 3Q18, an increase of 8.1% YoY, while total enterprise and service provider (SP) router market revenues declined 5.1% YoY in 3Q18 to $3.7 billion, according to IDC's Quarterly Ethernet Switch Tracker and IDC Quarterly Router Tracker.

"Digital Transformation and adoption of Third Platform technologies continue to drive demand for network transformation and in turn the Ethernet switching equipment market," said Rohit Mehra, vice president, Network Infrastructure, at IDC. "While hyperscalers and cloud service providers are pushing consumption at the high end of the switching market, there remains strong growth in the enterprise campus and lower speed switching platforms too, highlighting the increased demands of the network from organizations of all sizes."



Some highlights from IDC:

  • 100Gb Ethernet switch revenues continue to grow rapidly. Port shipments for 100Gb switches rose 154.6% year over year to 3.5 million. 
  • 100Gb revenues broke the $1 billion barrier in 3Q18, reaching $1.1 billion to make up 14.8% of the market's total revenue. 
  • 25Gb ports saw even higher growth rates with port shipments up 251.0% to 2.6 million and revenue increasing 219.6% year over year for 3.7% of the market's revenue. 
  • 40Gb port shipments rose too, growing 12.6% year over year to 1.3 million, while revenues declined 10.4% for 7.5% of the market's total. 
  • Lower-speed campus switches continued to see strong demand. 
  • 10Gb port shipments rose 16.0% year over year to make up 28.8% of the market's revenue. 
  • 1Gb switches saw port shipments grow 8.4% year over year to 116.4 million, representing 42.3% of the market's total revenues.
  • The worldwide enterprise and service provider router market fell by 5.1% on a year-over-year basis in 3Q18 with the major service provider segment, which accounts for 76.2% of revenues, declining by 7.3%. 
  • The enterprise portion of the router market grew 2.5% year over year. 
  • From a regional perspective, the combined service provider and enterprise router market declined 24.4% in the U.S., where service provider revenues dropped 31.5% while enterprise revenues grew 8.7%. 
  • Cisco finished 3Q18 with a 3.8% year-over-year increase in overall Ethernet switch revenues and market share of 54.4%. In the hotly contested 25Gb/50Gb/100Gb segment, Cisco is the market leader with 39.4% revenue, which is up from the 34.6% share it held in this segment in the previous quarter. Cisco's combined service provider and enterprise router revenue declined 2.2% year over year, with enterprise router revenue increasing 4.1% but service provider revenues declining 5.3%. Cisco's combined service provider and enterprise router market share increased to 42.7% from 35.7% last quarter.
  • Huawei's Ethernet switch revenue rose 21.3% on an annualized basis but was down 7.5% sequentially from 2Q18 to 3Q18 with market share of 8.6%. The company's combined service provider and enterprise router revenue rose 2.2% year over year with a market share of 23.5%.
  • Arista Networks saw Ethernet switch revenues increase 27.6% in 3Q18, bringing its share to 6.6% of the total market, up from 5.6% a year earlier. With its focus on the datacenter, the company continues to cater to the higher end of Ethernet switch speeds with 100Gb revenues accounting for 66.1% of the company's total revenue, indicating the company's focus on cloud providers and large enterprises.
  • HPE's Ethernet switch revenue grew 12.0% year over year but was off 4.9% sequentially. The company's market share rose to 5.7%, up from 5.5% a year earlier.
  • Juniper's Ethernet switch revenue grew 3.8% in 3Q19, bringing its market share to 3.0%. Juniper saw a 15.2% decline in combined enterprise and service provider router sales, bringing its market share in the router market to 13.4%.


https://www.idc.com/getdoc.jsp?containerId=prUS44527718

Monday, November 12, 2018

IDC: Worldwide telecom service revenue is flat -- 0.6% growth for 2018

Worldwide spending on Telecom Services and Pay TV Services will increase by 0.6% in 2018 (in constant dollar terms) to $1.65 trillion, according to the IDC Worldwide Telecom Services Database, a notable decrease compared to the rate recorded in 2017 (1.2%).

IDC says the dip is mostly the consequence of new accounting rules introduced since the start of this year: mobile operators are now obliged to completely exclude their handset sales revenues from service revenues, which has had a negative impact on service revenues although the overall effect is neutral as handset sales would have gone up.


"This is, of course, just a momentary effect," said Kresimir Alic, senior program manager, IDC Worldwide Telecom Services Database. "We believe that the growth rate will recover as soon as next year." Over of the 2017-2022 forecast period, the market is expected to remain in a positive mood, growing at a compound annual growth rate (CAGR) of 0.8%.

Additional highlights from IDC:

  • Mobile will remain the largest market segment for telecom revenues and its share is expected to reach 52% of the total market in 2018. 
  • The mobile market is set to grow at five-year CAGR of 1.2%
  • Increased mobile data usage and expanding M2M applications is offsetting declines in spending on mobile voice and messaging services. 
  • Fixed data services are expected to represent 22% of total spending in 2018 and is set to grow at a 4% CAGR through 2022.
  • Spending on fixed voice services will decline at a -5% CAGR over the forecast period and will represent less than 9% of the total market by 2022.
  • The Americas will remain the largest services market with revenues of $624 billion in 2018. 
  • Asia/Pacific will follow in second place with $541 billion in revenues.
  • EMEA is third with revenues $483 billion.


"Developed and mature markets will only show marginal gains now, driven by technology migration and bandwidth needs," said Eric Owen, group vice president, EMEA Telecommunications & Networking. "Most operators are now looking to invest in 5G and are struggling with the return on investment given the mature nature of the markets. Success will demand innovative and agile thinking from the operators coupled with some help from regulators in highly competitive markets such as Europe."

Tuesday, November 6, 2018

IDC: 5G network infrastructure market to grow at 118% CAGR

The worldwide 5G network infrastructure market is expected to grow from approximately $528 million in 2018 to $26 billion in 2022, according to IDC's inaugural forecast for this market segment, and representing a compound annual growth rate (CAGR) of 118%.

The 5G network infrastructure market includes 5G RAN, 5G NG core, NFVI, routing and optical backhaul.

IDC expects 5G RAN to be the largest market sub-segment through the forecast period, in line with prior mobile generations.

In addition to 5G NR and 5G NG core, procurement patterns indicate communications service providers (SPs) will need to invest in adjacent domains, including backhaul and NFVI, to support the continued push to cloud-native, software-led architectures.

"Early 5G adopters are laying the groundwork for long-term success by investing in 5G RAN, NFVI, optical underlays, and next-generation routers and switches. Many are also in the process of experimenting with the 5G NG core. The long-term benefit of making these investments now will be when the standards-compliant SA 5G core is combined with a fully virtualized, cloud-ready RAN in the early 2020s. This development will enable many communications SPs to expand their value proposition and offer customized services across a diverse set of enterprise verticals through the use of network slicing," says Patrick Filkins, senior research analyst, IoT and Mobile Network Infrastructure.

The report, Worldwide 5G Network Infrastructure Forecast, 2018-2022 (IDC #US44392218), presents IDC's inaugural forecast for the 5G network infrastructure market. Revenue is forecast for both the 5G RAN and 5G NG Core segments and each of the three related sub-segments (NFVI, Routing Backhaul, and Optical Backhaul). The report also provides a market overview, including drivers and challenges for communications service providers and advice for technology suppliers.

Thursday, October 4, 2018

IDC: Security spending to reach $133.7 billion in 2022

Worldwide spending on security-related hardware, software, and services is forecast to reach $133.7 billion in 2022, according to an new update to IDC's Worldwide Semiannual Security Spending Guide, amounting to a compound annual growth rate (CAGR) of 9.9%. Security spending is forecasted to be $92.1 billion for 2018.

"Security remains an investment priority in every industry as companies seek to protect themselves from large-scale cyber attacks and to meet expanding regulatory requirements," said Eileen Smith, program director, Customer Insights and Analysis. "While security services are an important part of this investment strategy, companies are also investing in the infrastructure and applications needed to meet the challenges of a steadily evolving threat environment."

Some highlights:

  • Security-related services will be both the largest ($40.2 billion in 2018) and the fastest growing (11.9% CAGR) category of worldwide security spending. 
  • Managed security services will be the largest segment within the services category, delivering nearly 50% of the category total in 2022. 
  • Integration services and consulting services will be responsible for most of the remainder. 
  • Security software is the second-largest category with spending expected to total $34.4 billion in 2018. 
  • Endpoint security software will be the largest software segment throughout the forecast period, followed by identity and access management software and security and vulnerability management software. The latter will be the fastest growing software segment with a CAGR of 10.7%. Hardware spending will be led by unified threat management solutions, followed by firewall and content management.
  • Banking will be the industry making the largest investment in security solutions, growing from $10.5 billion in 2018 to $16.0 billion in 2022. 
  • Security-related services, led by managed security services, will account for more than half of the industry's spend throughout the forecast. The second and third largest industries, discrete manufacturing and federal/central government ($8.9 billion and $7.8 billion in 2018, respectively), will follow a similar pattern with services representing roughly half of each industry's total spending. The industries that will see the fastest growth in security spending will be telecommunications (13.1% CAGR), state/local government (12.3% CAGR), and the resource industry (11.8% CAGR).
  • The United States will be largest geographic market for security solutions with total spending of $39.3 billion this year. 
  • The United Kingdom will be the second largest geographic market in 2018 at $6.1 billion followed by China ($5.6 billion), Japan ($5.1 billion), and Germany ($4.6 billion). 


https://www.idc.com/getdoc.jsp?containerId=prUS44370418


Sunday, September 30, 2018

IDC: Cloud infrastructure spending continues double-digit growth rate

Vendor revenue from sales of infrastructure products (server, enterprise storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 48.4% year over year in the second quarter of 2018 (2Q18), reaching $15.4 billion, according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker.

IDC also raised its forecast for total spending (vendor recognized revenue plus channel revenue) on cloud IT infrastructure in 2018 to $62.2 billion with year-over-year growth of 31.1%.

"As share of cloud environments in the overall spending on IT infrastructure continues to climb and approaches 50%, it is evident that cloud, which once used to be an emerging sector of the IT infrastructure industry, is now the norm. One of the tasks for enterprises now is not only to decide on what cloud resources to use but, actually, how to manage multiple cloud resources," said Natalya Yezhkova, research director, IT Infrastructure and Platforms. "End users' ability to utilize multi-cloud resources is an important driver of further proliferation for both public and private cloud environments."


Some highlights:

  • Quarterly spending on public cloud IT infrastructure has more than doubled in the past three years to $10.9 billion in 2Q18, growing 58.9% year over year.
  • By end of the year, public cloud will account for the majority, 68.2%, of the expected annual cloud IT infrastructure spending, growing at an annual rate of 36.9%.
  • In 2Q18, spending on private cloud infrastructure reached $4.6 billion, an annual increase of 28.2%. IDC estimates that for the full year 2018, private cloud will represent 14.8% of total IT infrastructure spending, growing 20.3% year over year.
  • The combined public and private cloud revenues accounted for 48.5% of the total worldwide IT infrastructure spending in 2Q18, up from 43.5% a year ago and will account for 46.6% of the total worldwide IT infrastructure spending for the full year. 
  • Spending in all technology segments in cloud IT environments is forecast to grow by double digits in 2018. Compute platforms will be the fastest growing at 46.6%, while spending on Ethernet switches and storage platforms will grow 18.0% and 19.2% year over year in 2018, respectively. Investments in all three technologies will increase across all cloud deployment models – public cloud, private cloud off-premises, and private cloud on-premises.
  • The traditional (non-cloud) IT infrastructure segment grew 21.1% from a year ago, a rate of growth comparable to 1Q18 and exceptional for this market segment, which is expected to decline in the coming years. At $16.4 billion in 2Q18 it still accounted for the majority, 51.5%, of total worldwide IT infrastructure spending. For the full year, worldwide spending on traditional non-cloud IT infrastructure is expected to grow by 10.3% as the market goes through a technology refresh cycle, which will wind down by 2019. By 2022, we expect that traditional non-cloud IT infrastructure will only represent 44.0% of total worldwide IT infrastructure spending (down from 51.5% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.
  • All regions grew their cloud IT Infrastructure revenue by double digits in 2Q18. Asia/Pacific (excluding Japan) (APeJ) grew revenue the fastest, by 78.5% year over year. Within APeJ, China's cloud IT revenue almost doubled year over year, growing at 96.4%, while the rest of Asia/Pacific (excluding Japan and China) grew 50.4%. Other regions among the fastest growing in 2Q18 included Latin America (47.4%), USA (44.9%), and Japan (35.8%).

Thursday, September 13, 2018

IDC: VNF revenues to hit $16.4 billion in 2022

IDC is predicting that the virtual network functions (VNF) market to grow to $16.4 billion in 2022 at a compound annual growth rate (CAGR) of 45.4%,

According to IDC's inaugural forecast for the period 2018–2022, the worldwide revenue for the VNF market in 2017 stood at $2.5 billion across all segments. IDC said VNF revenue weill double as early 5G deployments take shape and as wireline initiatives such as vCPE, CORD, and HERD gain further momentum.

The new VNF forecast follows the release of IDC's first forecast for Network Functions Virtualization Infrastructure (NFVI) in August 2018.

"Communications service providers globally recognize the need to digitally transform their network infrastructure and build more customer-centric business models. Embracing software-defined networking principles and deploying network functions in virtualized form factors are a strategic necessity not only for carriers as they invest in their future but also for vendors supplying those solutions to the market," said Rajesh Ghai, research director, Carrier Network Infrastructure research at IDC. "This research document is IDC's first effort to size and forecast the market for virtual network functions (VNFs) across all carrier network infrastructure domains."

Sunday, September 9, 2018

IDC: Enterprise storage market driven by major refresh cycle

Vendor revenue in the worldwide enterprise storage systems market increased 21.3% year over year to $13.2 billion during the second quarter of 2018 (2Q18), according to IDC's Worldwide Quarterly Enterprise Storage Systems Tracker.

"Strong 2Q18 growth was driven by an ongoing infrastructure refresh cycle, investments in next-generation workloads, expanded use in public cloud services and data-driven initiatives," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies. "The growing data economy is a big part of the current market growth. Companies of all sizes are investing in platforms that support their need to ingest, process, and disseminate large volumes of data cost-effectively and without introducing new risks to the business."

Some highlights:

  • Total capacity shipments were up 70.7% year over year to 111.8 exabytes during the quarter.
  • Revenue generated by the group of original design manufacturers (ODMs) selling directly to hyperscale datacenters increased 31.7% year over year in 2Q18 to $3.3 billion. 
  • This represents 25.1% of total enterprise storage investments during the quarter. 
  • Sales of server-based storage increased 24.9% year over year to $3.8 billion in revenue. This represents 28.5% of total enterprise storage investments. The 
  • external storage systems market was worth slightly over $6.1 billion during the quarter, up 14.4% from 2Q17.
  • Dell was the largest supplier for the quarter, accounting for 19.1% of total worldwide enterprise storage systems revenue and growing 26.6% over 2Q17. 
  • HPE/New H3C Group was the second largest supplier with 17.3% share of revenue and year-to-year growth of 1.9%. 
  • NetApp generated 6.3% of total revenue, making it the third largest vendor during the quarter. This represented 19.8% growth over 2Q17. 
  • IBM was the fourth largest supplier with a 4.6% share of market revenue during the quarter and year-over-year growth of 7.5%. Hitachi, Lenovo, and Huawei were all statistically tied* for the number 5 position with shares of 3.1%, 3.0%, and 2.7% respectively. 
  • As a single group, storage systems sales by ODMs directly to hyperscale datacenter customers accounted for 25.1% of global spending during the quarter, up 31.7% over 2Q17.

IDC: Enterprise WLAN market grew 2.6%

The combined consumer and enterprise wireless local area network (WLAN) market segments rose 1.9% year over year in the second quarter of 2018 (2Q18) with worldwide revenues of $2.5 billion, according to IDC's Worldwide Quarterly WLAN Tracker.

"The enterprise WLAN market continues to see moderate, steady growth, underscoring the importance of wireless networking for businesses of all sizes around the world," said Brandon Butler, senior research analyst, Network Infrastructure at IDC. "Enterprises continue to explore new ways WLAN deployments can help connect workers, enable engagement with customers, and improve business processes."

Some highlights:

  • The enterprise segment grew 2.6% year over year in 2Q18 to $1.5 billion. 
  • Consumer WLAN market revenue increased slightly, up 0.8% in 2Q18 compared to a year earlier, finishing at $1.0 billion. 
  • From a geographic perspective, the enterprise WLAN market saw its strongest growth in 2Q18 coming from Japan, which grew 23.0% year over year, and from the Latin America region, which rose 8.9% on a year-over-year basis. Mexico, Latin America's largest market, saw a 24.5% revenue increase from a year earlier while Brazil's revenues were up 30.1% on the year. Central and Eastern Europe (CEE) also saw healthy growth rates with regional revenues increasing 6.3% compared to 2Q17. Notable CEE markets included Russia with a 7.3% year-over-year gain and Poland's with 12.9% growth.
  • Cisco's worldwide enterprise WLAN revenue increased 3.3% year over year in 2Q18 and was up 12.5% sequentially between the first and second quarters of 2018. Cisco's worldwide market share was 43.6% in 2Q18, in line with the company's 43.3% share in 2Q17. IDC believes that the Meraki cloud-managed WLAN portfolio remains one of the primary growth drivers for Cisco.
  • Aruba-HPE (excluding its OEM business) revenues fell 10.3% year over year in 2Q18 but rose 38.9% from 1Q18. Aruba-HPE's market share stands at 15.1% in 2Q18, down from 17.2% in 2Q17.
  • ARRIS/Ruckus continued to perform very well in 2Q18 and grew 19.3% year over year and 1.5% sequentially. ARRIS/Ruckus now accounts for 6.7% of the enterprise WLAN market, up from 5.8% in the same quarter of 2017.
  • Ubiquiti recorded another quarter of strong growth in 2Q18, increasing 10.8% year over year. Ubiquiti accounted for 5.7% of the enterprise market in 2Q18, up from 5.3% in 2Q17.
  • Huawei once again experienced very strong growth in 2Q18, increasing 16.0% over 2Q17 and up 42.8% sequentially from 1Q18, while claiming 5.1% market share versus its 4.5% market share in 2Q17.



Thursday, September 6, 2018

IDC: Ethernet switching market hits $6.7B in Q2, up 4.8%

The worldwide Ethernet switch market (Layer 2/3) recorded $6.7 billion in revenue in 2Q18, an increase of 4.8% year over year, according to IDC Quarterly Ethernet Switch Tracker and IDC Quarterly Router Tracker.

"Dynamics in the Ethernet switching market continue to shift as enterprise and service providers are demanding higher-speed Ethernet switch products," said Rohit Mehra, vice president, Network Infrastructure at IDC. "While different regions are at varying stages of maturity, the market is clearly looking to capitalize on new equipment, which is helping to drive vendor revenue growth."

Some highlights:

  • The worldwide total enterprise and service provider (SP) router market recorded $3.8 billion in revenue in 2Q18, decreasing 2.5% on a year-over-year basis. 
  • 100Gb shipments reached more than 2.8 million ports and $893.5 million in revenue in 2Q18. 
  • 100Gb now accounts for 13.2% of total market revenue, compared to 8.1% during the same quarter in 2017. 
  • 25GbE switch products continue to gain traction with shipments exceeding 2.0 million ports and $197 million in revenue in 2Q18. 
  • Port shipments of 40GbE, meanwhile, grew 2.1% year over year, but price erosion for these products led 40 GbE revenues to fall 13.5% compared to last year.
  • The 2Q18 Ethernet switch market recorded its strongest growth in the Asia/Pacific (excluding Japan) region (APeJ), which increased 16.6% year over year in 2Q18. The China market, which makes up the largest share of the region's total, drove the growth with a 26.4% revenue increase between 2Q17 and 2Q18. The Western Europe region grew 4.3% from 2Q17 with Germany – the region's largest market – increasing 13.2% year over year. 
  • Japan grew 3.8%. The United States, the largest regional market in the world, was down 1.6% year over year.
  • The worldwide enterprise and service provider router market fell 2.5% on a year-over-year basis in 2Q18 with the service provider segment, which accounts for 76.9% of the market, declining 3.9% and the enterprise portion growing 2.5% year over year. The service provider segment was negatively impacted by weak CAPEX spending by major communications service providers, especially in the United States.




Wednesday, September 5, 2018

IDC: Server sales reach historic high - $22.5 billion in Q2

Vendor revenue in the worldwide server market increased 43.7%, year over year to $22.5 billion during Q2 2018, according to the newly updated International Data Corporation (IDC) Worldwide Quarterly Server Tracker. Worldwide server shipments increased 20.5% year over year to 2.9 million units in 2Q18. Worldwide server shipments increased 20.5% year over year to 2.9 million units in 2Q18.

Q2 Mwas the fourth consecutive quarter of double digit revenue growth and the highest total revenue ever for the server business. Volume server revenue increased by 42.7% to $18.4 billion, while midrange server revenue grew 63.0% to $2.5 billion. High-end systems grew 30.4% to $1.7 billion.

"The worldwide server market continues to flourish amid a market-wide enterprise refresh cycle and increasing demand from cloud service providers," said Sanjay Medvitz, senior research analyst, Servers and Storage at IDC. "Enterprises continue to invest in new infrastructure to support next-generation applications and achieve cloud-like benefits on premise. Hyperscalers also continue to update and expand their data center presence, benefiting ODM Direct suppliers. Server revenue growth has also been driven by increasing average selling prices (ASPs). This is due to richer configurations, DRAM prices, and new processor platforms."

Some highlights:

  • Dell achieved the number one position in the worldwide server market for the first time in 2Q18 with 18.8% revenue share and 52.9% growth. 
  • HPE/New H3C Group was the second largest supplier with 16.6% share of total vendor revenue, growing 11.7%. IBM and Lenovo were statistically tied for third position in the market with respective shares of 7.3% and 6.9%. 
  • Inspur, Cisco, and Huawei rounded out the top five, all statistically tied with 4.8%, 4.8%, and 4.3% respective shares of vendor revenue. 
  • The ODM Direct group of vendors increased its collective revenue by 55.9% (year over year) to $5.5 billion. 
  • Dell Inc. led the worldwide server market in terms of unit shipments, accounting for 19.5% of all units shipped during the quarter.


https://www.idc.com/getdoc.jsp?containerId=prUS44259518


Thursday, August 23, 2018

IDC: NFVI revenues to hit $5.6 billion in 2022

Worldwide NVFI revenues were just $564 million in 2017 but will grow at a compound annual growth rate of 58.1% over the 2017-2022 forecast period, reaching $5.6 billion in 2022, according to a new study from IDC.

In defining NFVI, IDC relies on ETSI's proposed architecture to identify five segments: software-defined compute, networking, storage, management, and orchestration. IDC expects the orchestration segment will be the fastest growing, driven by the need to orchestrate network services dynamically across an increasingly complex smorgasbord of network functions – both physical and virtual – potentially across several vertical domains. Software-defined networking is also likely to grow significantly, driven by the growing need to programmatically manage network flows in response to a dynamic market and an application/use case environment – both within the telco cloud datacenter and across telco cloud deployments to manage services flows.

From a domain perspective, wireless infrastructure is the largest contributor to the NFVI forecast today and will continue to be the largest contributor throughout the forecast, followed by routing. 5G will be a big driver of wireless infrastructure NFVI growth, while the move to virtual routing in edge and access use cases will enable routing NFVI growth to outperform the overall market.

"Communications service providers globally recognize the need to digitally transform their network infrastructure and build more customer-centric business models. Embracing software-defined networking principles and deploying network functions in virtualized form factors are a strategic necessity not only for carriers as they invest in their future but also for vendors supplying those solutions to the market," said Rajesh Ghai, research director, Carrier Network Infrastructure research at IDC. "NFVI is the foundation on which this vision rests and this forecast is IDC's first effort to size this strategically important segment of carrier network infrastructure."

Sunday, August 12, 2018

IDC: SD-WAN infrastructure to hit $4.5 Billion in 2022

The SD-WAN infrastructure market will grow at a 40.4% compound annual growth rate from 2017 to 2022 to reach $4.5 billion, according to IDC's latest SD-WAN Infrastructure Forecast.

  • IDC said SD-WAN infrastructure revenues increased 83.3% in 2017 to reach $833 million. 
  • IDC finds that Cisco holds the largest share of the SD-WAN infrastructure market, fueled by its extensive routing portfolio that is used in SD-WAN deployments, as well as its Meraki offering and its August 2017 acquisition of Viptela. 
  • VMware, which in December 2017 purchased VeloCloud, holds the second largest market share in the SD-WAN infrastructure market, followed by Silver Peak, Riverbed, Aryaka, Nokia and Versa.

IDC is also publishing its first market share report for this segment, including 2016 and 2017 revenues by vendor for SD-WAN infrastructure.

"The emergence of SD-WAN technology has been one of the fastest industry transformations we have seen in years. Organizations of all sizes are modernizing their Wide Area Networks to provide improved user experience for a range of cloud-enabled applications," said Rohit Mehra, vice president, Network Infrastructure, IDC. "Incumbent networking vendors have quickly realigned their routing and WAN optimization portfolios to take on the growing cadre of startups in this market. Enabled by a rapid uptake across the service provider domain, SD-WAN infrastructure will continue to grow rapidly in the coming years, providing a beachhead for other software-defined networking and security functions in the enterprise branch."

https://www.idc.com/getdoc.jsp?containerId=prUS44203118


Sunday, June 24, 2018

IDC: SaaS constitutes majority of public cloud revenue

IDC reports that Software as a Service (SaaS) is the largest category of public cloud by market value, although Platform-as-a-Service is growing faster, and that the United States still represents over half of all public cloud spending, although spending in other regions is catching up.

According to IDC Worldwide Semiannual Public Cloud Services Tracker, the worldwide public cloud services market grew 29% in 2017, reaching a total of $117 billion. This is marginally lower than 2016.

The top 16 providers (by market share) are consolidating their lead and now account for just over half of all the worldwide public cloud services spending (50.7%).

"2017 was a pivotal year in the expansion of public cloud service adoption, as public cloud services continued to defy the usual laws of market gravity: for the fifth straight year, spending growth remained at a scorching 29%, even as the size of the market has tripled over that time," said Frank Gens, senior vice president and chief analyst at IDC. "2017 also saw some intriguing market share shifts among the major players, as all of them have significantly increased their focus on the cloud, and competitive pressure has ratcheted way up. The next three years will determine IT industry leadership for the next two decades and beyond."

"The SaaS delivery model accounts for 68% of worldwide public cloud services revenue. SaaS applications continue to grow at a respectable 22%, reaching $75 billion in 2017 and forecast to reach $163 billion by 2022. In the System Infrastructure Software (SIS) category, security SaaS accounts for 42% of all revenue, with a five-year CAGR of 13% through 2022. While new SaaS companies launch regularly, technology mainstays like Salesforce, Microsoft, and Oracle remain atop the list of SaaS providers," said Frank Della Rosa research director, SaaS and Cloud for IDC.

"Demand for applications has continued to fuel the growth of PaaS services to improve developer productivity. Emerging technologies like containers and serverless computing are changing the delivery and consumption model of PaaS services. As more companies demonstrate value from platforms, adoption rates will remain high in the near future," said Larry Carvalho, research director, Platform as a Service at IDC.



Thursday, June 21, 2018

IDC: Cloud infrastructure sales soared at 45% rate in Q1

Venndor revenue from sales of infrastructure products (server, storage, and Ethernet switch) for cloud IT, including public and private cloud, grew 45.5% year over year in the first quarter of 2018 (1Q18), reaching $12.9 billion, according to IDC's Worldwide Quarterly Cloud IT Infrastructure Tracker.

"Hyperscaler datacenter expansion and refresh continued to drive overall cloud IT infrastructure growth in the first quarter," said Kuba Stolarski, research director for Infrastructure Platforms and Technologies at IDC.

"While all infrastructure segments continued their strong growth, public cloud has been growing the most. IDC expects this trend to continue through the end of 2018. Digital transformation initiatives such as edge computing and machine learning have been bringing new enterprise workloads into the cloud, driving up the demand for higher density configurations of cores, memory, and storage. As systems technology continues to evolve towards pooled resources and composable infrastructure, the emergence of these next-generation workloads will drive net new growth beyond traditional enterprise workloads."

Some highlights from the most recent report.

  • IDC raised its forecast for total spending on cloud IT infrastructure in 2018 to $57.2 billion with year-over-year growth of 21.3%.
  • Public cloud infrastructure quarterly revenue has more than doubled in the past three years to $9.0 billion in 1Q18, growing 55.8% year over year. 
  • Private cloud revenue reached $3.9 billion for an annual increase of 26.5%. 
  • The combined public and private cloud revenues now represent 46.1% of the total worldwide IT infrastructure spending, up from 41.8% a year ago. 
  • Traditional (non-cloud) IT infrastructure revenue grew 22.0% from a year ago, although it has been generally declining over the past several years; at $15.1 billion in 1Q18 it still represents 53.9% of total worldwide IT infrastructure spending.
  • All regions grew their cloud IT Infrastructure revenue by double digits in 1Q18. Asia/Pacific (excluding Japan) grew revenue the fastest, by 74.7% year over year. Next were USA (43.6%), Middle East & Africa (MEA) (42.3%), Central and Eastern Europe (CEE) (39.2%), Latin America (37.7%), Canada (29.4%), Western Europe (26.1%), and Japan (15.0%).

Monday, June 18, 2018

IDC: IoT spending to hit $1.2 trillion in 2022

Internet of Things (IoT) spending will experience a compound annual growth rate (CAGR) of 13.6% over the 2017-2022 forecast period and reach $1.2 trillion in 2022, according to IDC's latest Worldwide Semiannual Internet of Things Spending Guide (version 2H17).

"The IoT market is at a turning point – projects are moving from proof of concept into commercial deployments," said Carrie MacGillivray, group vice president, Internet of Things and Mobility. "Organizations are looking to extend their investment as they scale their projects, driving spending for the hardware, software, services, and connectivity required to enable IoT solutions."

The IDC IoT Spending Guide details end-user adoption and spending across multiple segmentations. "The latest IoT Spending Guide release fully aligns to IDC's Industry Taxonomy. IDC said the consumer sector will lead IoT spending growth with a worldwide CAGR of 19%, followed closely by the insurance and healthcare provider industries. From a total spending perspective, discrete manufacturing and transportation will each exceed $150 billion in spending in 2022, making these the two largest industries for IoT spending. From an enterprise use case perspective, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) solutions will experience the fastest spending growth (29% CAGR) over the forecast period, followed by traffic management and connected vehicle security.

The Worldwide Semiannual Internet of Things Spending Guide forecasts IoT spending for 14 technologies across 20 vertical industries in nine regions and 53 countries through 100 use cases. Unlike any other research in the industry, this comprehensive spending guide was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.


See also