Showing posts with label Research. Show all posts
Showing posts with label Research. Show all posts

Thursday, May 13, 2021

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

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

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

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

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

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

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

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

Thursday, May 6, 2021

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

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

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

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

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

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

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

Sunday, April 25, 2021

Vertical Systems Group: 2020 U.S. Fiber Availability

New deployments of optical fiber to U.S. commercial buildings and data centers expanded in 2020 despite the pandemic, according to the latest ENS @Fiber Plus research from Vertical Systems Group. Fiber lit buildings are strategic assets that enable competitive advantages such as more profitable delivery of services and applications requiring up to gigabit speeds.

The latest research analysis shows that fiber availability for commercial sites continues to vary widely based on the size of the building. The U.S. Fiber Lit Landscape chart below illustrates the two primary segments tracked for this research: Fiber 20+ (buildings with twenty or more employees) and Fiber <20 (buildings with fewer than 20 employees). 

For 2020, fiber availability extends to 14.1% of buildings in the Fiber <20 segment. In contrast, the availability of fiber is 69.2% for all buildings in the Fiber 20+ segment. Detailed ENS research available for Fiber 20+ shows how fiber penetration varies significantly across four medium/large building size segments: 20 – 50 employees, 51 – 100 employees, 101 – 250 employees and 251+ employees.

Fiber market leadership is measured by Vertical Systems Group with annual Fiber LEADERBOARD benchmarks based on lit building counts. Eleven retail and wholesale fiber providers attained a rank position on the 2020 U.S. Fiber Lit Buildings LEADERBOARD.

A fiber-lit building is defined for this analysis to include multi-tenant and company-owned commercial sites plus data centers that have on-net optical fiber connectivity to a network provider’s infrastructure and active service termination equipment onsite. Excluded from this analysis are standalone cell towers, small cells not located in fiber-lit buildings, near net buildings, buildings classified as coiled at curb or coiled in building, HFC-connected buildings, carrier central offices, residential buildings, and private or dark fiber installations.

https://www.verticalsystems.com/

Dell'Oro hires Cliff Grossner to cover Edge Computing and IT Equipment Silicon

Dell'Oro Group has appointed Dr. Cliff Grossner to the role of Vice President, Edge Computing and IT Equipment Silicon including coprocessors for AI and ML. His current research agenda also includes AI driven data center automation suites and adoption of open infrastructure including OCP certified designs.

Dr. Grossner has more than 25 years of telecommunications experience encompassing scientific research, market analysis, strategy, and product management. Prior to joining Dell'Oro Group, Dr. Grossner held management roles in Omdia, and IHS Markit, focused on cloud services, data center IT and physical infrastructure.  He frequently is an expert judge for industry and technology innovation awards and an invited speaker, and often quoted in technical publications. Dr. Grossner earned his Ph.D. at McGill University, and his MSC in Computer Science at Concordia University, winning national scholarships to support his graduate work. He holds over 10 patents in computer networking, network embedded security and telecommunications applications.

"Dr. Grossner adds significant fire-power and experience in the world of IT equipment, components, and the intelligence software running over it. The team is excited with the perspectives and wisdom a man of his caliber brings. He has an excellent track record of identifying emerging markets and developing theories on where they are headed. I am very pleased Dr. Grossner has joined us," Tam Dell'Oro, Founder and CEO said.

 "I am excited to join Dell'Oro Group to research IT ecosystems, innovation has never been higher, driven by digitization and consumer demands. Equipment markets are shifting due to new technology, new business models, and disruptive early stage companies. I look forward to being first to identify and quantify new trends, provide insight on markets changes, help with product and go to market strategies following the Dell'Oro tradition of providing timely, accurate, and insightful information," commented Grossner.


http://www.delloro.com


Monday, April 5, 2021

Crehan: growth in 25GbE, 50GbE, 100GbE NICs, as well as SmartNICs

Data center customers deployed seven million more server-class Ethernet Network Interface Card (NIC) ports in 2020 than in 2019, resulting in a new record high for this market, according to a recent report from Crehan Research. Most of the new deployments were 25 gigabit Ethernet (GbE), 50GbE, and 100GbE NICs. This, in combination with a strong increase in SmartNIC adoption, drove revenue growth well above the year’s robust shipment growth.

Even with these strong results in 25GbE, 50GbE and 100GbE NICs as well as SmartNICs, Crehan’s report indicates that these technologies are still mostly in the early stages of adoption and should have numerous years of growth ahead.

“More users, deploying more applications requiring more bandwidth, fueled strong demand for both faster and smarter server-class Ethernet NICs,” said Seamus Crehan, president of Crehan Research. “Although there are factors specific to the pandemic that helped accelerate demand, these are still long-term trends that will continue to drive increased server-class Ethernet NIC deployments.”

Other noteworthy results from Crehan’s Server-Class Ethernet Adapter & LOM/Controller (NIC) report include:

  • 200GbE NICs started to ship in 2020, with Nvidia currently driving these volumes.
  • 100GbE NICs saw particularly strong demand in the latter half of 2020, helped by the arrival of server platforms for artificial intelligence workloads, such as Facebook’s Zion. Broadcom and Nvidia were the main drivers of this strong 100GbE NIC growth.
  • Intel accounted for the majority of total server-class Ethernet NIC shipments in 2020.

“We have entered a period of increased server-class Ethernet NIC innovation, as vendors and data center operators look for different and creative ways to address the new vectors of bandwidth demand coming from areas such as artificial intelligence, 5G and Edge computing, and disaggregated compute and networking,” Crehan said.

https://www.crehanresearch.com/

Sunday, April 4, 2021

5G adoption is tracking 3X as fast as LTE

 Global adoption of 5G is happening at 3X the pace as with 4G LTE, according newly released statistics from the trade organization 5G Americas.

According to data provided by Omdia, the world added 385.5 million 5G subscribers between Q4 2019 and Q4 2020 to reach 401 million 5G connections globally, shrugging off the challenges of a global pandemic and economic headwinds. 

Chris Pearson, President, 5G Americas said, “5G is in its early stages of fulfilling its full potential, as the industry has just finished the second inning of a nine-inning baseball game. In the second full year of commercially available 5G, the industry went from 15.4 million to 401 million subscribers. The uptake of 5G connections will accelerate significantly over the next few years.”

Some highlights from 5G Americas:

  • Omdia projects that by the end of 2025, global 5G connections will reach 3.4 billion. Regionally, the number of connections is forecast to reach 451 million in North America and 167 million in the Caribbean and Latin America by the end of 2025.
  • From a commercial availability standpoint, an additional 105 5G networks went live globally in 2020, bringing the total up to 163 5G networks. The number of commercial 5G networks is expected to reach 277 by the end of 2021, according to data from TeleGeography. The growing availability of 5G-enabled devices has also blossomed, with the Global Mobile Suppliers Association (GSA) noting there are now 628 5G devices announced, of which 404 were commercially available by the end of February 2021.
  • In addition to 5G, 4G LTE connections also experienced healthy growth in 2020, surpassing year-end projections of 5.73 billion to reach a total of 6 billion connections. Of those, 499 million 4G LTE connections are from North America and 407 million from Latin America and the Caribbean.
  • Broken down regionally, North America had 19.96 million 5G connections and 499 million LTE connections by the end of Q4 2020. For the region, this amounts to a 4098% annual growth in 5G, and a gain of over 19.5 million 5G connections over the year. Meanwhile, 4G LTE gained over 22 million connections in 2020, which represents 4.7% growth.
  • With 5G just beginning in Latin America and the Caribbean, the region saw 6340 5G subscriptions added in the year of 2020. In contrast, LTE continued its strong growth, ending Q4 2020 with 407 million LTE subscriptions (13% YoY growth). 

According to Jose Otero, Vice President of Caribbean and Latin America for 5G Americas “"Two elements can contribute to the proliferation of new commercial 5G networks in Latin America and the Caribbean. First, the increased availability of 5G-ready devices, especially for fixed wireless services. Second, governments' efforts to accelerate the launch of 5G networks that include spectrum assignment processes, 5G incubator projects, spectrum auction announcements and incentives for 5G trials.”

The number of networks using 4G and 5G wireless technologies are summarized here, as of March 2021:

Global

  • 5G:  163
  • LTE Advanced: 340
  • LTE: 678

North America 

  • 5G: 10
  • LTE Advanced: 11
  • LTE: 20

Latin America &amp; Caribbean

5G: 13

  • LTE Advanced: 48
  • LTE: 124

*Source: TeleGeography and 5G Americas

Wednesday, March 31, 2021

Vertical Systems: 2020 U.S. Carrier Managed SD-WAN LEADERBOARD

 The following companies achieved a position on Vertical Systems Group's 2020 U.S. Carrier Managed SD-WAN Services LEADERBOARD (in rank order based on site share): AT&T, Hughes, Verizon, Comcast, Windstream, Lumen, Aryaka and TPx. These service providers each have two percent (2%) or more of the installed and billable Carrier Managed SD-WAN customer sites in the U.S. as of December 31, 2020.

“The managed SD-WAN market in the U.S. endured the pandemic as service providers installed hundreds of new networks in extremely challenging conditions throughout the past year. Businesses and enterprises accelerated the retirement of MPLS assets, and made purchase decisions for SD-WAN solutions that enable more flexible access options and dynamic connectivity,” said Rick Malone, principal of Vertical Systems Group. “Some provider positions changed on our 2020 Leaderboard benchmark, and we expect further shuffling of the ranks as additional sizeable networks are activated this year.”

Four companies attained a Challenge Tier citation for 2020 (in alphabetical order): Fusion Connect, GTT, Meriplex and MetTel. The Challenge Tier includes service providers with between one percent (1%) and two percent (2%) share of U.S. Carrier Managed SD-WAN sites.

Research Highlights

  • Expansion of Carrier Managed SD-WAN services in the U.S. increased 39% in 2020, despite the pandemic. As previously projected, demand was resilient across bandwidth intensive markets, but vulnerable for verticals like retail and travel. Pre-pandemic site growth was 89% for managed SD-WAN services in 2019.
  • AT&T, Hughes and Verizon retain the top three U.S SD-WAN LEADERBOARD positions for the third consecutive year based on latest site share results.
  • Comcast advances to rank fourth for 2020, moving up from seventh position in 2019.
  • Windstream remains in fifth position. Lumen (formerly CenturyLink) moves to sixth position, from fourth in the prior year. Aryaka dips from sixth to seventh position. TPx debuts in eighth position, moving up from the Challenge Tier.
  • MetTel advances to Challenge Tier, up from the Market Player tier.
  • MEF 3.0 SD-WAN Service Certification has been attained by four of the 2020 LEADERBOARD companies: AT&T, Verizon, Comcast and Windstream.
  • The primary technology suppliers for the 2020 LEADERBOARD companies are VMware, Versa, Fortinet, and Cisco (vEdge/Viptela and selected Meraki MX models). Additionally, Aryaka and Hughes utilize internally developed technologies.
  • MEF 3.0 SD-WAN Technology Certification has been attained to date by Versa, VMware and Fortinet.

Market Players include providers selling Carrier Managed SD-WAN services in the U.S. with site share below one percent (1%), including global network providers that manage U.S. customer sites. For 2020, the Market Player tier includes the following companies (in alphabetical order): AireSpring, American Telesis, Bigleaf, bSimplify, BT Global Services, Cincinnati Bell, Cogent, Colt, Consolidated Communications, Cox, Crown Castle Fiber, DQE Communications, FirstLight, Frontier, Intelsat, Masergy, NTT, Orange Business, PCCW Global, PS Lightwave, RCN Business, SDN Communications, Segra, SES, SingTel, Sparklight Business, Spectrum Enterprise, Syringa, T-Mobile, T-Systems, Tata, Telefonica, Telia, Telstra, Transtelco, Veracity Networks, Virgin Media Business, Vodafone, Wave Business, Zayo and others.

Vertical Systems Group defines a Carrier Managed SD-WAN Service for segment analysis and share calculations as a carrier-grade offering for business customers that is managed by a network operator. Required components and functionality for these offerings include an SDN service architecture that enables dynamic optimization of traffic flows, a purpose-built SD-WAN appliance or CPE-hosted SD-WAN VNF (Virtual Network Function) at each customer edge site, support for multiple active underlay connectivity services, and centralized network orchestration with application visibility end-to-end.

https://www.verticalsystems.com/2021/03/25/2020-us-sd-wan-leaderboard/

Wednesday, March 24, 2021

Cignal AI: Drop in spending from N.American cloud and telcos in 4Q20

After spending aggressively during the first half of 2020, Traditional Telco operators (Incumbent and Wholesale) in North America curbed spending on optical and packet hardware during the fourth quarter. 4Q20 spending by these operators dropped almost 40%, according to the 4Q20 Transport Customer Markets Report from market research firm Cignal AI.

“North American network operators spent much less than usual in 4Q20 as they installed and used capacity acquired earlier in the year amidst COVID uncertainties,” said Scott Wilkinson, Lead Analyst for Transport Hardware. “This will change in 2021 as first Cloud and then Traditional operators resume normal spending patterns.”

 Key Findings from the 4Q20 Transport Customer Markets Report:

  • Fourth Quarter spending on optical hardware by Cloud & Colo expanded dramatically in APAC but declined in EMEA and North America.
  • Ciena lost some sales of optical transport equipment to Cloud operators but maintained market leadership in 2020. Huawei (due to growth in APAC), Nokia, and Infinera all gained share.
  • Huawei maintained market share leadership for the year in both optical and packet transport equipment sales to Traditional Telcos. The company has not yet seen market share declines from growing political pressure in EMEA.
  • Enterprise & Government spending on optical hardware was resilient for the year; defying expectations that it would decline due to COVID pressures.
  • Transport markets should return to growth in the second half of 2021 as COVID restrictions are lifted, operational difficulties are resolved, and businesses resume normal operations. Strength will be led by Cloud & Colo operators, followed by Traditional Telco operators.

https://cignal.ai/2021/03/north-american-traditional-telco-and-cloud-capex-drops-in-fourth-quarter/

Tuesday, March 16, 2021

Crehan: 100GbE shipments surpass 10GbE

Total shipments of 100 gigabit Ethernet (GbE) data center switch ports increased more than 20% during full-year 2020, according to a recent report from Crehan Research Inc. The robust increase, combined with a continuing decline in 10GbE shipments, resulted in 100GbE surpassing 10GbE to become the most widely deployed data center Ethernet switch connection speed.

Crehan’s data center Ethernet switch report further shows that this speed transition has occurred very rapidly, with 100GbE becoming a majority of shipments approximately just five years after initial 32*100GbE port (3.2Tbps) switch deployments. The hyperscale cloud service provider customer segment has been a key driver of the transition, accounting for the majority of cumulative 100GbE data center switch shipments to date.

“The data center Ethernet switch market’s transition to 100GbE as the most popular network connection speed is a reflection of the strong customer adoption of public data center networking: statistics analysis insights cloud services,” said Seamus Crehan, president of Crehan Research. “100GbE has been the de facto switch port speed in some of the largest hyperscale cloud service provider data center networks for over four years. Furthermore, this rapid migration to 100GbE has brought some significant market share shifts within the data center switch supplier ecosystem, and these shares are now in play again as the transition to 200GbE and 400GbE gains traction.”

Other noteworthy results from Crehan’s data center switch report include:

  • Arista accounted for close to 40% of cumulative 100GbE branded data center switch shipments.
  • Cisco accounted for over 40% of cumulative 100GbE branded data center switch revenue.
  • H3C, Huawei, and Juniper each shipped more than two million cumulative 100GbE data center switch ports since product introductions.
  • Nvidia’s 100GbE data center switch shipments more than doubled in 2020.
  • 25GbE data center switching also had very strong annual growth in 2020, with shipments increasing more than 30%.
  • Although data center Ethernet switch revenues declined slightly for the full year, there was a general progression of improvement from a steep year-over-year decrease in 1Q20 to moderate year-over-year growth by 4Q20.

"The robust 2020 growth for 100GbE shipments was impressive, given that two of the largest data center switch customers – Amazon and Google – have been ramping 400GbE deployments strongly," Crehan said.

https://www.crehanresearch.com/

Saturday, March 13, 2021

IDC: Server markets grows in revenue, shrinks in shipments

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

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

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

Wednesday, March 10, 2021

Dell'Oro: WLAN market sees big spending from education and govt sectors

 The Wireless LAN market experienced double-digit growth year-over-year in 4Q2020 thanks to government and stimulus spending in many countries including China, Japan, and the USA. Overall market outlook strengthens, according to a new report from Dell'Oro Group. Wireless LAN vendors lose opportunities as supply lead times extend beyond government funding use by date.

“While government spending is flowing into all vertical industries, it is most notable in K-12 Education and Government,” said Matthias Machowinski, Senior Research Director at Dell’Oro Group. “We estimate those two verticals alone contributed an additional 15 percent to overall market spend during 4Q 2020, as sales to K-12 increased 90 percent and Government increased almost 40 percent—extraordinary rates. Clearly, government spending is lifting overall market sales and by our judgment, is likely to continue through 2021 and beyond,” added Machowinski.


Additional highlights from the Wireless LAN 4Q 2020 Quarterly Report:

  • Wi-Fi 6 achieved a major milestone, accounting for the majority of access point revenue. Notable growth came from government-funded projects in China, Japan, and Mexico.
  • Demand surges for entry-level Enterprise-class access points for remote employees.

https://www.delloro.com/news/government-spending-drives-wireless-lan-market-to-double-digit-y-y-growth-in-4q-2020-outlook-strengthens/

Tuesday, March 9, 2021

Dell'Oro: Campus switch sales dipped in Q4

The worldwide Campus Switch revenue declined in 4Q 2020, following a short recovery in the prior quarter, according to a new report from Dell'Oro Group.  The year-over-year revenue decline was broad-based across all regions, except China which continued to grow for the third consecutive quarter.


“Government stimulus around the world, which propelled market recovery in 3Q 2020, continued in the fourth quarter of 2020,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “However, 4Q 2020 did not benefit from pent-up demand from large enterprises as much as the prior quarter did. On a more positive note, we started to see some sign of recovery in the mid-market,” added Boujelbene.

Additional highlights from the 4Q 2020 Ethernet Switch – Campus Report:

  • Despite the market decline, verticals that performed well during the quarter are government and public sector, lower education, financial sector, and manufacturing.
  • Industrial Ethernet switches were in high demand exiting the year.
  • 5/5.0 Gbps port shipments were up more than 60 percent in 2020, as the pandemic has accelerated the adoption of higher speeds and new technologies.
  • Major vendors with revenue share gain for the quarter as well as for the year are H3C, HPE, and Huawei.

Wednesday, March 3, 2021

Dell'Oro: Optical transport market slowed in 4Q2020

 Optical transport equipment revenue increased 1 percent in 2020 reaching $16 billion with growth in all regions with the exception of North America and Latin America, according to a new report from Dell'Oro Group.

“Between concerns on starting new optical builds during the start of the pandemic and aggressive plans on 5G deployments that required a larger share of a service provider’s capital budget, the spending on optical transport dramatically slowed by the end of 2020,” said Jimmy Yu, Vice President at Dell’Oro Group. “It was a really dramatic drop in optical equipment purchases in the fourth quarter. While we anticipated a slowdown near the end of the year due to concerns around COVID-19, we were surprised by a 29 percent year-over-year decline in WDM purchases in North America as well as a 12 percent decline in China. That said, there was good growth in the other parts of the world, especially Japan,” continued Yu.

https://www.delloro.com/news/optical-transport-equipment-market-grew-1-percent-in-2020-to-16-billion/

Tuesday, March 2, 2021

Dell'Oro: SD-WAN market Surged 50% in 4Q2020

The worldwide SD-WAN market grew 50 percent in the fourth quarter of 2020 compared to the prior year, according to a new report from Dell'Oro Group. The top five vendors in revenue share for the full-year 2020 were led by Cisco, followed by VMware, Fortinet, Versa, and HPE/Silver Peak.



“The combination of pent-up demand caused by the COVID-19 pandemic and an acceleration away from legacy technologies created a surge in SD-WAN adoption during the fourth quarter,” said Shin Umeda, Vice President at Dell’Oro Group. “On a full-year basis, the market grew 32 percent in 2020, which was about half the rate of the prior year, but very impressive given the challenging macroeconomic environment that we faced throughout the year,” added Umeda.

Additional highlights from the 4Q 2020 SD-WAN Report:

  • Dell’Oro Group’s quarterly tracking of the SD-WAN market is now available as a separate research report.
  • SD-WAN market share for 2020 saw increasing concentration in a small number of vendors. The top five vendors accounted for almost two-thirds of revenue share.
  • Vendors are increasingly leveraging security functionality to differentiate their SD-WAN solution and driving growth.
https://www.delloro.com/news/sd-wan-market-surged-50-percent-in-the-fourth-quarter-of-2020/

Monday, March 1, 2021

Cignal AI: North American Transport Spending Plummets in Q4

North American network operator purchases of optical and packet transport hardware dropped sharply in the fourth quarter, according to the most recent Transport Hardware Report from research firm Cignal AI, while European spending trends improved in Q4 but were also down on an exchange rate adjusted basis.

“Despite the massive disruptions during 2020, overall spending declined only slightly in 2020,” said Scott Wilkinson, Transport Hardware lead analyst at Cignal AI. “But this quarter, almost all vendors felt the impact of capex pulled forward in the year due to operators scrambling to secure safety stock.”

Additional 4Q20 Transport Hardware Report Findings:

For the entire year of 2020, NA optical transport hardware spending was down slightly vs. 2019, with Ciena and Infinera reporting flat YoY sales and Cisco, Nokia, and Fujitsu reporting declines.

Optical sales growth in EMEA was steady for the quarter and for the year, while sales in China were flat. Huawei continued to lead market share in both regions despite political pressure and new design wins by competitors.

The pattern of NA packet switching and routing sales closely mirrored that of optical sales, producing a decline of almost -20% this quarter. Nokia sales grew for the quarter and the year, while Cisco market share declined. Nokia gained share in the region, and Ribbon led YoY growth as it secured a significant win in the region to boost sales by more than 10x.

https://cignal.ai/2021/03/north-american-transport-spending-plummets-in-q4/

Wednesday, February 24, 2021

Dell'Oro: Microwave transmission equipment market dipped 6% in 2020

The market for Microwave Transmission equipment declined 6 percent in 2020 but is positioned for growth in 2021, according to new report from Dell'Oro Group.

“It was a difficult market environment for Microwave Transmission sales in 2020,” said Jimmy Yu, Vice President at Dell’Oro Group. “The pandemic, of course, was the main cause for the market decline, especially in regions of the world that placed strict rules on travel. But throughout the year, following a sharp decline in the first quarter, the market steadily strengthened, resulting in quarter-over-quarter revenue growth in each quarter following 1Q20,” added Yu.


Some highlights:

  • Huawei continued to hold the highest market share in each quarter of the year, and ultimately gained share against some of its competitors by the year’s end. 
  • Huawei achieved its highest market share level in 2020, surpassing its record level set back in 2016. 
  • The vendors with the next highest shares were Ericsson and Nokia, both of which benefited from the strengthening European market.
  • Only two regions—North America and Europe—grew year-over-year in the fourth quarter and full-year 2020. 

“We believe the North American market improvement was driven by growing demand in the Verticals market for public safety and Internet services, and that the European market grew due to an increasing demand for mobile backhaul,” stated Yu.

https://www.delloro.com/news/microwave-transmission-equipment-market-declined-6-percent-in-2020/

Thursday, February 4, 2021

650 Group: Multi-Cloud to Drive Significant Workload Growth

The worldwide number of workloads being deployed will increase nearly 500% by 2025, according to a new report published this week by 650 Group titled Workloads and Multi-Cloud Forecast 2020-2025

Workloads continue to evolve for both search and social clouds, as well as IaaS and SaaS providers. The report discusses the impact of the changes to component suppliers, end-users, system vendors, and is targeted for system vendors, ASIC suppliers, and component suppliers in the cloud infrastructure market.

Workload definitions evolve as technology expands. Historically, the context of a workload tied it directly to the number of servers, and later, it was the number of virtual machines (VMs) or applications that spanned machines. Today, the context evolves to the number of containers or individual serverless code-snippets. The compute, storage, and networking infrastructure had to evolve to support how the application changes.

"Multi-Cloud and new AI /ML workloads are driving significant investment in data centers with new compute and networking infrastructures emerging to address new workloads," said Alan Weckel, Technology Analyst at 650 Group. “The time has passed for an application and its data to reside in one data center. There is a tremendous opportunity for new vendors in multi-cloud, as well as co-location, to address evolving enterprise needs.”

https://www.650group.com/

Wednesday, January 27, 2021

Cignal AI: Big shifts in spending on optical and packet transport

Expenditures by North American cloud and colocation operators on optical and packet transport equipment declined 20 percent year over year in the third quarter of 2020 (3Q20), while incumbent operator spending increased 2 percent, according to the 3Q20 Transport Customer Markets Report from market research firm Cignal AI.

“Equipment suppliers to cloud operators report that sales in the third quarter were depressed because service providers absorbed capacity on networks that were built during the first half of 2020,” said Scott Wilkinson, lead analyst at Cignal AI. “Both incumbent and cloud operators, especially in North America, spent significantly more of their annual budget than typical in the first half of the year.”

More Key Findings from the 3Q20 Transport Customer Markets Report

  • After uncharacteristically strong growth in 2Q20, sales to cloud and colocation operators in Asia Pacific (APAC) rose dramatically again in the third quarter
  • Despite a year-over-year decline in sales, Ciena maintained its worldwide market share leadership in sales to cloud and colocation operators in 3Q20
  • The fourth quarter is expected to be challenging for sales outside APAC, with traditional telco and cloud and colocation purchases anticipated to wane worldwide

https://cignal.ai/2020/12/3q20-transport-customer-markets-report/

Sunday, January 24, 2021

Cignal AI: Strong demand for 400ZR pluggables

Global compact modular revenue grew 24 percent in the third quarter of 2020 (3Q20) over the prior year, versus just 7 percent growth for the total optical market, according to the latest Transport Applications Report from market research firm Cignal AI. Cignal AI defines “compact modular” as small form factor optical hardware that is designed for use in open and disaggregated networks.

“Compact modular is gaining popularity with a wider set of network applications and operators due to the continued adoption of disaggregation outside cloud and colocation,” said Scott Wilkinson, lead analyst at Cignal AI. “The market saw extraordinary growth in Asia Pacific over the last two quarters, with sales in the region now approaching those of EMEA.”




Meanwhile, the 400ZR market is getting underway, with several hundred modules shipped for testing and evaluation in 3Q20. “The demand pipeline for 400ZR remains strong and operators are pleased with the prototypes under evaluation,” said Andrew Schmitt, directing analyst at Cignal AI. “Acacia had a huge quarter thanks to a large buildout at Amazon AWS.”

More Key Findings from the 3Q20 Applications Report

  • Although Ciena reported a flat quarter overall for optical sales, its compact modular sales were up 18 percent year over year, and the company maintained its market leadership by a wide margin
  • Compact modular sales in APAC grew by more than 75 percent in the quarter; Huawei (mostly in China), Fujitsu (in Japan) and Nokia all more than doubled their sales in the region
  • Year-over-year sales of packet-OTN equipment grew only in APAC this quarter, and sales in North America declined by more than 25 percent
  • Overall compact modular sales growth is forecast to decelerate to low single digits in 4Q20 as capex budgets evaporate, especially in North America
  • Pluggable coherent optics are projected to account for 40 percent of the high-performance optical market by 2024
  • Shipments of fixed 400 Gbps+ coherent ports jumped 65 percent sequentially, to over 35,000 ports in the quarter
https://cignal.ai/2021/01/compact-modular-grows-faster-than-overall-optical-market-in-3q20/

Thursday, January 14, 2021

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

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


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

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