Showing posts with label Infonetics. Show all posts
Showing posts with label Infonetics. Show all posts

Sunday, October 18, 2015

IHS: 100G Poised to Ramp up Shipments in 2016

100G port shipments more than doubled in 2014 from the prior year, reaching 163,000 and IHS is now forecasting worldwide 100G port revenue to grow at a 137 percent compound annual growth rate (CAGR) from 2014 to 2019.

IHS expects 1G/2.5G/10G/40G/100G port shipments to exceed 700 million in 2015, totaling $45 billion.

“Deployments of 1G and higher networking ports continue unabated by both enterprises and service providers as they seek to bring capacity in line with the demands placed on their networks. In general, the higher the port speed, the higher the growth rate, which means that 40G and 100G are the key growth segments of the market. However, in a bit of a twist, 2.5G revenue had the highest growth in 2014 due to massive increases in GPON OLT spending in China and the rollout of Gigabit services in North America,” said Matthias Machowinski, research director for enterprise networks and video at IHS. “Looking ahead, we expect 40G revenue to start falling as early as 2017, as enterprise and data center demand shifts to the newly-released QSFP-based 100G technology.”

Research director for carrier transport networking at IHS and co-author of the report Andrew Schmitt added: “2016 is poised to be a breakout year for 100G technologies as coherent 100G ports ramp in metro networks, and companies such as Google, Microsoft and Amazon introduce 100G Ethernet switching technology into their massive hyperscale data centers.”

http://www.infonetics.com

Monday, May 11, 2015

Infonetics: Market for 100G Data Center Transceivers is Accelerating

Revenue from 10-, 40- and 100-Gigabit optical transceivers sold into the enterprise and data center markets grew 21 percent in 2014 to $1.4 billion, almost entirely due to increased 40G QSFP (quad small form factor pluggable) spending, according to a new report from Infonetics.

“40G transceivers are ramping up hard as data centers deploy 40GbE, particularly as a high-density 10G interface via breakout cables. 40G QSFP demand growth over single-mode fiber is primarily a result of large shipments to internet content providers Microsoft and Google,” said Andrew Schmitt, research director for carrier transport networking at IHS Infonetics.

“The market for 100G data center optics is accelerating, but it has yet to be turbocharged by widespread data center deployment in the way 40G QSFP optics have. This will change dramatically in 2016 as cheap 100G silicon reaches production and QSFP28 shipments surge as a result,” Schmitt said. “Next year is going to be huge for 100GbE.”

IHS Infonetics’ biannual 10G/40G/100G Data Center Optics market size and forecast report tracks in granular detail optical transceivers, or short reach optics, by speed, reach, wavelength and form factor. Some highlights:

Data center transceivers account for 65 percent of the overall (telecom and datacom) 10G/40G/100G optical transceiver market
Total 40G transceiver revenue grew 81 percent in the second half of 2014 (2H14) over the same period a year ago (2H13)
10G shipments in the data center continue to grow at healthy rates, but are being impacted by growth of 40G interfaces used as high-density 10G interfaces
Meanwhile, worldwide revenue for client 10G modules was flat on a year-over year basis in 2014
IHS Infonetics expects the datacom optical transceiver market to grow to over $2.1 billion by 2019.

http://www.infonetics.com

Sunday, May 3, 2015

Infonetics: Virtualized Deep Packet Inspection (DPI) to Take Off

The market for deep packet inspection (DPI) solutions deployed as a virtual network function (VNF) will grow at a 66 percent compound annual growth rate from 2014 to 2019, according to a new report from Infonetics.

SERVICE PROVIDER DPI MARKET HIGHLIGHTS

  • The FCC has released its net neutrality rules in the US, but the issue is far from resolved and court challenges are underway; regulations in Western Europe are under reevaluation as well and the topic is rearing its head in emerging markets
  • The focus of the deep packet inspection market is shifting toward use cases such as video optimization, granular charging, network security and content connectivity
  • In machine-to-machine (M2M) applications, DPI technology is being used to enable better identification of traffic generated by connected devices and mitigate its impact on the network
  • Sandvine and Allot are neck-and-neck in the race for the DPI market share lead, followed by Cisco and Procera.

“As operators evaluate likely targets for virtualization as part of a larger network functions virtualization strategy, DPI is a clear target, though ongoing concerns around performance and capacity will constrain the market for virtualized DPI in the short term,” said Shira Levine, research director for service enablement and subscriber intelligence at Infonetics Research, now part of IHS.

http://www.infonetics.com/pr/2015/2H14-Service-Provider-DPI-Market-Highlights.asp

Monday, April 13, 2015

Infonetics: SDN Hesitation Impacted SP Switch/Router Market

Service provider router and switch revenue totaled $14.6 billion worldwide in 2014, essentially flat over 2013 as SDN (software-defined networking) hesitation slowed spending, according to a new report from Infonetics Research, which is now part of IHS.

“We’ve been talking about this for the past year and it’s still true: the enormity of the coming SDN-NFV transformation is making carriers more cautious with their spending,” said Michael Howard, senior research director for carrier networks at Infonetics Research, now part of IHS. “But this does not mean that router and switch spending will take a sizeable downturn. Rather, we look for the market to slowly climb to $17 billion in 2019, a five-year compound annual growth rate (CAGR) of just over 3 percent—unchanged from our previous forecasts.”

Some highlights of Infonetics’ fourth quarter 2014 (4Q14) and year-end Service Provider Routers and Switches:

  • Worldwide service provider router and switch revenue was $3.8 billion in 4Q14, up 2 percent on a quarter-over-quarter and year-over-year basis
  • Sales in the core router segment dipped 5 percent in 2014 from the previous year as expected due to the volume of capacity already “in the ground”
  • Carriers in North America exercised caution in their router/switch spending in 2014, sending revenue down 7 percent from 2013
  • However, the other major geographical regions—EMEA, Asia Pacific and Latin America—were in positive territory in 2014
  • China came to the rescue of a flat 2014 Asian telecom economy with a double-digit increase over the previous year
  • On the whole in 2014 and 4Q14, the top 4 router and CES manufacturers—Alcatel-Lucent, Cisco, Huawei and Juniper—stayed in dominant positions, together taking 85 percent of revenue

http://www.infonetics.com/pr/2015/4Q14-Service-Provider-Routers-Switches-Market-Highlights.asp

Tuesday, January 13, 2015

Infonetics: Global Service Provider CAPEX to Flatten After 2015

Global mobile service revenue barely budged in the first half of 2014 (1H14), up just 0.5 percent from the same period a year ago, badly dragged by Europe again, according to a new report from Infonetics.

Overall, growth in telecom revenue continues to slow in every geographic region. Europe’s 5 largest service providers—Deutsche Telekom, Orange, Telecom Italia, Telefónica, and Vodafone—continue to experience declining revenue, though less pronounced than in the past 3 years. And in North America, AT&T and Verizon have signaled that the mobile services price war started by T-Mobile US is taking a bite,” says Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Co-author of the report Matthias Machowinski, Infonetics’ directing analyst for enterprise networks, adds: “After a weak 2013, enterprise networking and communication revenue growth accelerated in 2014 thanks to a resurging North American market and stepped-up investments in security infrastructure. We expect similar results in 2015, when strong end-user demand in North America and Asia Pac is likely to be offset by a slowdown in Europe.”

Some other highlights:

  • Macroeconomic indicators point to moderate global economic growth of 3 percent for the full-year 2014 due to persistent weaknesses in the Eurozone and a significant slowdown in Brazil and Russia.
  • Mobile data services (text messaging and mobile broadband) rose again in every region in 1H14, driven by the increasing usage of smartphones.
  • Mobile broadband services grew 26 percent year-over-year, enough to offset the decline of SMS revenue.
  • Key trends affecting the enterprise networking and communication markets include the adoption of cloud services, the use of cloud architectures in enterprise data centers, and security becoming a part of every IT decision.

http://www.infonetics.com/pr/2014/1H14-Telecom-and-Datacom-Market-Trends-and-Drivers.asp

Friday, January 9, 2015

Infonetics: Shift to Generic Hardware and Virtualization Pressuring Video Equipment Prices

Global broadcast and streaming video equipment revenue decreased 4 percent to $810 million in the first half of 2014 (1H14), with nearly all product segments down, according to a new report from Infonetics Research.

“The cost of encoding and transcoding platforms continues to come down, pressuring video and broadcast equipment revenue as pay-TV providers move to generic hardware platforms and, ultimately, network functions virtualization (NFV) rather than dedicated platforms,” said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. “This is a long-term shift that will keep video revenue from growing more significantly, despite the fact that pay-TV providers must fundamentally alter their video processing environments to support linear, over-the-top (OTT) and multiscreen content that continues to grow exponentially.”

Some highlights:

  • Sales of video-on-demand (VOD) playout servers rose 20 percent in 1H14 from 2H13 as operators in China and the Middle East continue to drive spending 
  • Content delivery network (CDN) edge server revenue is forecast by Infonetics to grow at a 14 percent CAGR from 2013 to 2018, and multiscreen broadcast encoders are expected to grow moderately 
  • Despite the sluggishness in the first half of the year, Infonetics expects streaming video and broadcast equipment revenue for the full-year 2014 to be up slightly.
http://www.infonetics.com/pr/2014/1H14-Broadcast-and-Streaming-Video-Eqpmt-Market-Highlights.asp

Wednesday, January 7, 2015

Infonetics: Fibre Channel SAN Shows New Life

Worldwide converged data center network adapter revenue was up 13% sequentially in 3Q14, with converged network adapters (CNAs) in the lead, followed by internet small computer system interface (iSCSI) adapters, according to a new report from Infonetics Research. The report tracks storage area network (SAN) Fibre Channel switches and host bus adapters (HBAs), converged data center network adapters, and switch ports-in-use for storage.

Some highlights:

  • In 3Q14, the global storage area network (SAN) equipment market, including Fibre Channel switches and host bus adapters (HBAs), grew 10% from 2Q14 to $654 million, and was up 15% from 3Q13
  • Another transformation in the converged data center network adapter market is on the horizon: the introduction of 25GE, expected in 2015 targeting large cloud service providers (CSPs)
  • Brocade dominates the SAN switch and adapter market, while Intel leads the converged data center network adapter space.
“The long-term downward streak for Fibre Channel SAN equipment was broken in the third quarter of 2014 (3Q14), driven by high performance requirements for flash storage and Cisco’s customers finishing their SAN product evaluation cycles and beginning to scale deployments,” notes Cliff Grossner, Ph. D., directing analyst for data center, cloud, and SDN at Infonetics Research.

“The question remains, however, whether the growth expected from solid-state drive storage and Gen 6 Fibre Channel that’s expected in the coming year will be enough to return the market to increased growth,” continues Grossner. “We believe the answer is yes for the short term, but do not see any evidence that double-digit growth will return to Fibre Channel market.”

http://www.infonetics.com/pr/2014/3Q14-SAN-and-Converged-DC-Network-Equipment-Market-Highlights.asp

Thursday, January 1, 2015

Infonetics Research Acquired by IHS

Infonetics Research has been acquired by IHS Inc. (NYSE: IHS), which provides information, expertise and analysis to support the decision-making process of businesses and governments. Financial terms were not disclosed.

Infonetics will be integrated into the IHS Technology group, which includes 10 major market coverage areas, including Automotive and Transportation; Consumer Electronics; Displays; Industrial, Security and Medical Technology; Information Technology (IT); Materials and Cost Benchmarking; Media; Power and Energy; Semiconductor and Components; and Telecommunications.

"The synergy between IHS and Infonetics is significant," says J'Amy Stewart, CEO and co-founder of Infonetics Research. "IHS has a global salesforce in 32 countries, very complementary technology coverage, and the majority of the Global Fortune 500 and U.S. Fortune 1000 companies as clients."

http://www.infonetics.com/pr/2014/ihs-acquires-infonetics-research.asp

Friday, December 5, 2014

Infonetics: LTE-A and Small Cells Driver Microwave Equipment Sales

The worldwide microwave equipment market hit $1.1 billion in 3Q2014, up 4% sequentially, though down 2% from a year ago, according to a new report from Infonetics Research.

"So far this year, the microwave equipment market has been in a revenue dip, trending downward due to pricing pressures and intertechnology competition with wireline backhaul alternatives. But now the combination of LTE-A upgrades and modest growth in small cell deployments is giving the market a small injection of energy," notes Richard Webb, directing analyst for mobile backhaul and small cells at Infonetics Research.  "Several vendors saw improved quarter-over-quarter results in the third quarter, and we expect the microwave equipment market to inch up in 2015."

Some highlights:

  • Backhaul continues to dominate the microwave market, while access and transport remain stable niche segments
  • The EMEA region (Europe, the Middle East, and Africa) leads the world in microwave equipment revenue, followed by Asia Pacific
  • Pricing pressure on microwave gear persists: Infonetics forecasts ARPU for Ethernet-only units (which account for an increasing proportion of shipments) to decline to around half its 2013 value by 2018
  • Topping the microwave equipment market share leaderboard in 3Q14 are (in alphabetical order): Alcatel-Lucent, Ceragon, Ericsson, Huawei, and NEC.

http://www.infonetics.com/pr/2014/3Q14-Microwave-Equipment-Market-Highlights.asp

Wednesday, December 3, 2014

Infonetics: LTE Rollouts to Peak in 2015

Rollouts of LTE networks are approaching a peak, according to a new report from Infonetics Research.

"In the mobile infrastructure market, the third quarter of 2014 was almost a carbon copy of last quarter, and we are now reaching the peak of plain LTE rollouts, which are so brisk in China that they are overshadowing strong activity in Europe, the Middle East, and Russia," notes Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

Some highlights:

  • Operators are currently spending around $5.6 billion per quarter on LTE, and this has prompted Infonetics to raise its 2014 forecast for the global macrocell 2G, 3G, and 4G mobile infrastructure market to $45.4 billion, up from $43 billion the prior year
  • Investments initially earmarked for 2015 have shifted to 2014, reinforcing Infonetics' prediction that the LTE market will peak in 2015
  • The worldwide macrocell 2G/3G/4G mobile infrastructure market totaled $11.2 billion in 3Q14, up 0.4% sequentially, and up 10% year-over-year
  • Nokia Networks moved into the #1 spot for LTE revenue in 3Q14, propelled by strong performances in the U.S. and China
  • China continues to push LTE through the roof, but the rest of the world is also moving fast to LTE, with 331 commercial networks launch.

http://www.infonetics.com/pr/2014/3Q14-Mobile-Infrastructure-Market-Highlights.asp

Monday, December 1, 2014

Infonetics: Big Jump in Carrier Ethernet Switch Sales

While sales of service provider routers continue to slow, sales of carrier Ethernet switches are trending sharply up, according to a new report from Infonetics Research.

“The ‘SDN hesitation’ we first identified four quarters ago remains in effect, slowing router spending in the third quarter of 2014 as carriers remain cautious about investing in equipment and software that might need to be replaced in the future,” says Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research.

“Meanwhile carrier Ethernet switches (CES) had an unprecedented quarter, with global revenue up 32% from the previous quarter and up 14% from a year ago, driven by ZTE in China and Cisco in North America,” continues Howard. “Fundamental changes are on the horizon as the market transitions from hardware-driven to software-driven, but no doubt routers must be fitted with higher-capacity blades to accommodate growing traffic, and there is intensifying focus on content delivery networks (CDNs) and smart traffic management across routes to make routers and optical gear cooperate more closely.”

Some highlights:

  • Combined, service provider routers and switches—including IP edge and core routers and carrier Ethernet switches—totaled $3.7 billion worldwide in 3Q14, down 3% from the previous quarter
  • All regions except CALA (Caribbean and Latin America) were down sequentially in 3Q14
  • However, the market is up 3% from the year-ago 3rd quarter, reflecting the long-term slow growth trend Infonetics has been tracking
  • Infonetics expects the global carrier router and switch market to slowly grow to $17 billion by 2018, a five year (2013–2018) compound annual growth rate of just over 3%
  • Looking at rolling 4-quarter router market share, Huawei increased its share the most of any vendor (+4.6 points) from 3Q12 to 3Q14, as edge and core router revenue stayed relatively flat.

http://www.infonetics.com/pr/2014/3Q14-Service-Provider-Routers-Switches-Market-Highlights.asp

GEN14: What's Driving Business Ethernet Services?


Vertical Systems Group recently reported that customer installations of Carrier Ethernet services in the U.S. will reach one million ports in 2018.  The projected figure includes all retail Ethernet services at speeds ranging from sub-10 Mbps to more than 10 Gbps. So, what's driving the market for business Ethernet? The recent MEF GEN14 conference in Washington, D.C., which brought together over 1,000 attendees from 36 countries, featured...


Saturday, November 29, 2014

Infonetics: VoLTE Drives Subscriber Data Management Momentum

While mobile deployments will continue to dominate the subscriber data management (SDM) market, there is interesting activity in the fixed-line space, including using SDM to support multiscreen video and enable multiple subscriber profiles supported by a single set top box (STB), according to a new report from Infonetics Research.

LTE and voice over LTE (VoLTE) continue to drive the subscriber data management (SDM) market as operators look to synchronize data across domains and ensure a smooth transition for subscribers across access networks. And we expect voice over WiFi (VoWiFi) to have a similar accelerating effect as VoWiFi devices become available,” says Shira Levine, directing analyst for service enablement and subscriber intelligence at Infonetics Research.

“Meanwhile, the ongoing buzz around analytics and big data is translating into interest in SDM’s role as an aggregator of subscriber information across multiple points in the network and IT realms,” Levine adds.

Some highlights:


  • Operators will be launching network functions virtualization (NFV) initiatives over the next few years, but the virtualization of back-end subscriber data repositories is expected to be slow to follow as concerns about the reliability, availability, and security of virtualized network functions persist
  • Organizational issues such as internal resistance to sharing data across departmental “silos” remain a major hurdle to operators’ SDM strategies
  • The worldwide market for SDM software and services is forecast by Infonetics to grow to $2.5 billion in 2018, with services gradually representing a larger share of the market.


http://www.infonetics.com/pr/2014/1H14-SDM-SW-Market-Highlights.asp

Wednesday, November 19, 2014

Infonetics: Sales of Global Carrier WiFi Equipment to Soar

The global carrier WiFi equipment market (carrier WiFi access points and WiFi hotspot controllers) totaled $527 million in 2013, a gain of 9% from the previous year, driven in part by the deployment of small cells with integrated WiFi, according to a new report from Infonetics Research.

Some highlights:

  • In the first half of 2014 (1H14), carrier WiFi equipment revenue reached $286 million, up 6% from the second half of 2013 (2H13)
  • 802.11ac access points contributed 11% to 1H14 WiFi access point revenue and are expected to see notable adoption in the coming years
  • The evolution of network functions virtualization (NFV) offers the opportunity for more cost effective WiFi service delivery by a range of service providers as well as enterprises and other organizations with existing WiFi (or wireless LAN) deployments
  • Cisco, Huawei, and Ruckus Wireless (listed in alphabetical order) are the carrier WiFi market share leaders in 1H14

“The carrier WiFi market has seen a dynamic injection of growth in the last couple of years, driven by fixed and mobile operators seeking to extend and enhance their broadband subscription services,” notes Richard Webb, directing analyst for mobile backhaul and small cells at Infonetics Research. “The push for service augmentation and upgrade to the 802.11ac standard, combined with the opportunities presented by Hotspot 2.0, voice over WiFi (VoWiFi), and network functions virtualization (NFV) to derive new service models, will drive the carrier WiFi market to $3 billion in 2018.”

http://www.infonetics.com/pr/2014/1H14-Carrier-WiFi-Equipment-Market-Highlights.asp

Infonetics: 100G Transceiver Shipments on the Rise

Globally, 10G, 40G, and 100G transceiver revenue totaled $1.9 billion in 2013, up 18% from 2012, owing almost entirely to increased shipments of 100G WDM and 40G QSFP+, according to Infonetics Research.

Major growth in the data center for 100GbE is on the horizon due to new silicon entering the market and lower-cost QSFP28 optics, including SR4 and much cheaper 2km LR4 optics,” says Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research. “Interest in 25GbE is also building momentum for a jump in these formats.”

“In the telecom world, the market for 100G coherent equipment is controlled by five vendors—Alcatel-Lucent, Ciena, Cisco, Huawei, and Infinera—who are vertically integrated, and this is preventing an incursion by standalone component vendors,” adds Schmitt. “We expect volumes in the metro 100G market to ramp in a year and, according to service providers, this will be led by data center and internet content providers.”

Some highlights:

  • In the first half of 2014 (1H14), 10G/40G/100G transceiver revenue grew 11% from the same period a year ago, and full-year 2014 sales are expected to reach $2.1B, a 10% increase over 2013
  • Infonetics forecasts the coherent WDM market to double in 2014
  • Big growth in 40G data center interfaces is impacting 10G volumes, as QSFP+-based interfaces used for high-density 10G start encroaching; growth in the 10G datacom segment is expected to slow beginning this year
  • Shipments of 40GbE QSFP optics in 1H14 were lower than anticipated due to softer demand from internet content providers, whose needs remain erratic due to a lack of effective forecasting, irregular demand trends, and unpredictable order patterns
  • Interest in 100G data center optics is accelerating, but has yet to be turbocharged by widespread data center deployment in the way 40G QSFP optics have been.


http://www.infonetics.com/pr/2014/1H14-Optical-Transceivers-Market-Highlights.asp

Monday, November 17, 2014

Infonetics: Optical Hardware Sales Dipped 5% in Q3 2014

The global optical network hardware market (SONET/SDH, WDM) totaled $3 billion in 3Q14, down 10% sequentially, and down 5% year-over-year, according to a new report released by Infonetics Research.

Some highlights of the report:

  • Though WDM equipment revenue is up 4% in 3Q14 from a year ago, strong WDM spending trends waned in North America, and EMEA (Europe, Middle East, Africa) continued to decline
  • North America stopped pulling the optical train in 3Q14 as strong results from Ciena were offset by other vendors’ weaker performance
  • Europe, meanwhile, remains in an optical slump compounded by a weak macro economy, and Asia Pacific was down by double digits on a sequential basis
  • Market gains are accumulating to fewer vendors, but Alcatel-Lucent, Ciena, Cyan, Infinera, and NEC all notched positive results in 3Q14.

“A spending divergence is opening in the optical market, with some service providers, primarily competitive carriers and internet content providers, growing spend, while traditional carriers proceed with caution. Companies less dependent on EMEA and incumbent carriers are faring better—this effect explains the varying sentiment in the industry,” notes Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research.

http://www.infonetics.com/pr/2014/3Q14-Optical-Network-Hardware-Market-Highlights.asp

Thursday, November 6, 2014

Infonetics: Carrier SDN and NFV to reach $11 billion by 2018

The global carrier SDN and NFV hardware and software is forecast to grow from less than $500 million in 2013 to over $11 billion in 2018, according to a new report from Infonetics Research.

The new 46-page report provides detailed analysis of the SDN and NFV markets and their many facets—from SDN router and switch hardware and software, to the many categories of NFV, particularly the virtualized network functions (VNFs) comprising policy (policy and charging rules function [PCRF] and deep packet inspection [DPI]), the mobile packet core and evolved packet core (EPC), IP multimedia subsystem (IMS), and security.

Some highlights:

  • NFV represents the lion’s share of the combined SDN and NFV market, from 2014 out to 2018
  • The value of NFV is in the virtualized network functions software—the applications—rather than the orchestration and control; VNF makes up over 90% of the NFV software segment
  • SDN and NFV exemplify the telecom industry’s shift from hardware to software: SDN and NFV software are projected to make up of three-quarters of total SDN/NFV revenue in 2018

“For three years, the telecom industry has been abuzz over SDN and NFV, with anticipation and hard work developing the vision, goals, architectures, use cases, proof-of-concept projects, field trials, and even some commercial deployments. We’ve been gathering data in this early market for nearly two years and are projecting the global service provider SDN and NFV market to reach $11 billion in 2018,” says Michael Howard, Infonetics Research's co-founder and principal analyst for carrier networks.

http://www.infonetics.com/pr/2014/Carrier-SDN-NFV-Market-Highlights.asp

Wednesday, October 8, 2014

Infonetics: Carrier Spending on OTN Switching and P-OTS Jump 35% YoY

The global optical transport network (OTN) market totaled $4.3 billion in the first half of 2014 (1H14), an increase of 9% from the first half of 2013 (1H13), however sales of OTN switching gear jumped 35% in the period, according to a new report from Infonetics Research.

“The dramatic growth of OTN switching we saw last year carried over into the first half of 2014 (1H14), with revenue soaring 35% from the same period a year ago as deployment is catalyzed by service providers continuing rollouts of 100G coherent technology,” notes Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research. “Most of the growth in OTN switching is coming from North America as spending trends stagnate again in EMEA. The P-OTS market is also up 35% in 1H14, as providers continue to favor packet optical systems that combine OTN and Ethernet switching over more complex and expensive carrier Ethernet systems.”

Some highlights of the report:

  • Alcatel-Lucent, Ciena, and Infinera are the key beneficiaries as service providers adopt integrated WDM and OTN switching and deploy 100G coherent technology in the core
  • Meanwhile, Chinese carriers continue to expand deployments of OTN switching, benefitting both Huawei and ZTE
  • Incumbent vendors Ciena, Cisco, Coriant, Fujitsu, and Huawei (listed in alphabetical order) are the P-OTS market leaders, and new players BTI, Cyan, and Transmode are challenging with pure-play P-OTS platforms
  • The OTN market is forecast by Infonetics to grow at a 12% compound annual growth rate (CAGR) from 2013 to 2018, slightly faster than the wavelength division multiplexing (WDM) segment


http://www.infonetics.com/pr/2014/1H14-OTN-Packet-Optical-Hardware-Market-Highlights.asp

Wednesday, September 10, 2014

Infonetics: Data Center and Enterprise SDN Market Soars 192%

In-use for SDN Ethernet switch revenue, including branded Ethernet switches, virtual switches, and bare metal switches, grew more than 10-fold in 2013 from the prior year, driven by significant increases in white box bare metal switch deployments by very large cloud service providers such as Google and Amazon, according to a newly published report by Infonetics Research.

Some highlights:

  • Vendors are seeding the market with SDN-capable Ethernet switches in the data center and enterprise LAN
  • The leaders in the SDN market will be solidified during the next 2 years, as 2014 lab trials give way to live production deployments
  • Bare metal switches are the top in-use for SDN-capable switch use case in the data center and are anticipated to account for 31% of total SDN-capable switch revenue by 2018
  • Infonetics forecasts the “real” market for SDN—that is, in-use for SDN Ethernet switches and controllers—to reach $9.5 billion in 2018
  • The adoption of SDN network virtualization overlays (NVOs) is expected to go mainstream by 2018

“There is no longer any question about software-defined networking (SDN) playing a role in data center and enterprise networks. Data center and enterprise SDN revenue, including SDN capable Ethernet switches and SDN controllers, was up 192% year-over-year (2013 over 2012),” reports Cliff Grossner, Ph.D., directing analyst for data center, cloud, and SDN at Infonetics Research. “The early SDN explorers—NEC in Japan and pure-play SDN startups in North America—were joined in 2013 by the majority of traditional switch vendors and server virtualization vendors offering a wide selection of SDN products.”

http://www.infonetics.com/pr/2014/Data-Center-and-SDN-Market-Highlights.asp

#SDNforecast

Infonetics: Ethernet Switching Up 11% to $5.4B in 2Q14

The global Ethernet switch market grew 11% to $5.4 billion in 2Q14, a result of better than anticipated results at #1 Cisco and strong results by a number of smaller players including Arista, Brocade, HP, Huawei, Juniper, and ZTE, according to Infonetics Research's most recent Ethernet Switches report, which tracks unmanaged, web-managed, and fully-managed fixed and chassis switches by port speed (100M, 1G, 10G, 40G, 100G).

Some highlights:

  • Year-over-year growth accelerated from 2% in 1Q14 to 6% in 2Q14
  • Switching growth was well balanced across small- and medium-sized business (SMB) and enterprise accounts, and the public sector is showing signs of stabilization
  • Web-managed and fully-managed fixed switches posted strong growth from 2Q13 to 2Q14, while unmanaged and chassis switches declined
  • 100G ports grew over 50% sequentially in 2Q14, and over 3,000 ports were sold;
  • 100G on fixed switches will start shipping in 3Q14, which is expected to sustain current market growth rates
  • Asia Pacific is the key growth region for Ethernet switches right now, but not all countries are faring equally: China is delivering very strong growth and the rest of APAC is accelerating, while Japan is trending flat to slightly down


"The Ethernet switching market recovered in the second quarter of 2014 after a slow first quarter, but revenue growth remains challenged as vendors compete aggressively against each other, white-label solutions gain greater traction, and large data center operators negotiate more favorable terms," notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

Continues Machowinski: "So while overall switching demand remains healthy, revenue is growing at only half the rate of port shipments."

http://www.infonetics.com/cgp/login.asp?id=914

Monday, August 18, 2014

Infonetics:Optical Spending Rises in Asia-Pac

Global optical spending is roughly flat year-over-year (2Q14 from 2Q13) as strength in Asia Pacific offset weakening spending trends in EMEA, according to Infonetic Research's new  2nd quarter 2014 (2Q14) Optical Network Hardware report.

Some highlights:

  • In North America, internet content providers (ICPs) such as Google and others generated a wave of optical spending at a handful of vendors including Adva, BTI, and Infinera, altogether accounting for an estimated $40 million surge in 2Q14
  • Worldwide optical network hardware revenue, including SONET/SDH and WDM, totaled $3.3 billion in 2Q14, a sequential gain of 27% aided by strong seasonal performances from Huawei and ZTE
  • Worldwide WDM equipment revenue in 2Q14 is up 6% year-over-year
  • The 1st half of 2014 brought another huge flood of 100G WDM shipments by Alcatel-Lucent, Ciena, Cisco, Huawei, and Infinera
  • Ciena’s and Infinera’s North American optical revenue grew rapidly on a year-over-year basis in 2Q14, while Fujitsu’s and Alcatel-Lucent’s decreased.

“While the term ‘tier-1’ is traditionally associated with the incumbent operators of Europe and RBOCs in North America, it is now qualitatively clear that tier-1 spending growth is coming from the competitive dark fiber and internet exchange carriers. These carriers, as well as vertically-integrated internet content providers (ICPs), provide a growing portion of core internet connectivity and intra-datacenter capacity,” notes Andrew Schmitt, principal analyst for carrier transport networking at Infonetics Research.

See also