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

Thursday, January 14, 2021

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

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


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

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Tuesday, January 12, 2021

IDC: Public cloud IT infrastructure revenue growth stays strong

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

Some highlights:

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


IDC: PC sales rocket ahead at 26% growth rate

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

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

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


Wednesday, December 9, 2020

IDC: Worldwide server market revenue up 2.2% in Q3

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

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

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

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


Wednesday, October 14, 2020

IDC: Worldwide IT and business services revenue hit by pandemic

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

Some key insights from IDC:

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

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Tuesday, September 29, 2020

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

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

Some observations from IDC:

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


Tuesday, September 8, 2020

IDC: Worldwide server market grew 19.8% YOY in Q2

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

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

Some highlights from IDC:


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



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.


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Thursday, June 25, 2020

IDC: Cloud IT infrastructure spending up 2% in Q1

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

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


Some highlights:

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


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