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

Thursday, November 19, 2020

Cignal AI: EMEA optical and packet transport spending bounces back

European operators resumed purchases of optical and packet transport hardware in 3Q20 as COVID-related supply chain and operational delays eased, according to the most recent Transport Hardware Report from research firm Cignal AI. At the same time, North American spending weakness spread to the optical hardware segment as the region’s operators paused capex after aggressive deployments in the first half of the year.

“EMEA’s packet and optical transport sales growth was bolstered by sales deferred from Q2 and raised the market overall during the third quarter,” said Scott Wilkinson, Transport Hardware lead analyst at Cignal AI. “The outcome was different in North America, where sales were more frontloaded in the first two quarters than in EMEA, especially by the larger operators. NA annual CapEx budgets are largely exhausted, producing declining sales in the second half of the year for this region.”

Highlights:

  • Optical hardware spending grew by double-digits in EMEA, countering expectations of a flat-to-down quarter in optical spending. Nokia led the robust growth with a boost from sales deferred from Q2. Worldwide, optical hardware spending was up slightly.
  • Packet transport hardware spending also rose in EMEA but declined worldwide. EMEA packet transport revenue for both Huawei and Juniper grew by more than 20% YoY as the two companies gained ground on market leaders Cisco and Nokia.
  • North American optical and packet spending declined this quarter, as anticipated by vendors (Ciena, Cisco) with exposure to large network operators. Ciena continues to lead optical market share with slight YoY revenue growth, while Cisco maintains packet transport market leadership despite a sharp YoY revenue decline.

https://cignal.ai/2020/11/emea-optical-and-packet-transport-spending-bounces-back-in-3q20/

Dell'Oro: Optical transport equipment market grew 9% in 3Q 2020

Thanks to higher demand in Asia Pacific, optical transport equipment revenue increased 9 percent year-over-year in 3Q 2020 reaching $3.8 billion, according to a new report from Dell'Oro Group.

“Sales slowed in North America following a strong first half of the year,” said Jimmy Yu, Vice President at Dell’Oro Group. “Whether it was due to network demand caused by people working and studying from home or new projects at the beginning of the year, the demand for optical equipment in the region rose 11 percent in the first half of 2020. But I think there was enough concern surrounding the longevity of the pandemic that service providers grew cautious and refrained from overextending their capital. As a result, optical revenue in North America declined 7 percent in the third quarter,” continued Yu.


Highlights:

  • Growth in Asia Pacific more than offset the lower revenue in North America and Latin America. 
  • Optical revenue grew 22 percent year-over-year in Asia Pacific, driven largely by higher deployments in China and Japan. 
  • With lockdown restrictions easing, some regions such as Middle East and Africa (MEA), significantly rebounded in the quarter following a sharp decline in 1H 2020. 
  • Sales in China, Japan, and MEA each grew over 25 percent.

https://www.delloro.com/news/optical-transport-equipment-market-grew-9-percent-in-3q-2020-to-3-8-billion/

Dell'Oro: Surging demand for 5G accelerates RAN growth

Preliminary readings indicate that the positive momentum that has characterized the radio access network (RAN) market since the upswing began in the second half of 2018 extended into the third quarter, with surging demand for 5G propelling the RAN market to robust year-over-year growth, according to Dell'Oro Group.

“While we correctly identified that the RAN market would appear disconnected from the underlying economy throughout this year, we also underestimated the pace and the magnitude of these 5G rollouts,” said Stefan Pongratz, analyst with the Dell’Oro Group. “This shift from 4G to 5G, including low-band-and mid-band 5G NR, continued to accelerate at a torrid pace in the quarter, underpinned by stronger-than-expected 5G activity in multiple regions.”


Highlights:

  • RAN revenue shares were impacted to some degree by the state of the 5G rollouts in China and North America, resulting in share gains for both Huawei and ZTE over the 1Q20-3Q20 period.
  • The near-term outlook remains favorable for both macro and small cells, with combined 2020 and 2021 2G-4G and 5G base station shipments projected to eclipse 10 M units.
  • We have adjusted the near-term RAN market outlook upward, to reflect stronger than expected activity in China, Europe, and North America, with total RAN projected to approach $70 B to $80 B for the combined 2020 and 2021 period.

Tuesday, November 17, 2020

Dell'Oro: Microwave Transmission Equipment Market up 6% in 3Q

The market for Microwave Transmission equipment grew 6 percent year-over-year in 3Q 2020 following a steep decline in the first half of the year, according to a new report from Dell'Oro Group.

“The wireless backhaul market began to recover in the third quarter following the end of COVID-19 related lock downs,” stated Jimmy Yu, Vice President at Dell’Oro Group. “We think there is more growth to come for this market and remain positive that demand for Microwave Transmission equipment will continue to increase. Assuming the worst of the pandemic is behind us, the economy recovers, and 5G mobile radio deployments stay on pace, we are predicting the microwave market to grow 4 percent next year to $3.1 billion,” added Yu.


For the year-to-date period, which includes the first nine months of 2020, the top six microwave vendors with a collective revenue share of nearly 80 percent were Huawei, Ericsson, Nokia, Ceragon, NEC, and Aviat. Among these vendors, three (Aviat, Huawei, and Nokia) outperformed the market and increased their individual market shares by at least one percentage point in the year-to-date period compared to last year.

The vendors with the highest share in the fast growing E/V Band market, which grew 35 percent year-over-year in 3Q 2020, were Huawei, Nokia, Ericsson, and Siklu. In the year-to-date period, Nokia’s share of the E/V Band market sharply increased by eight percentage points.

https://www.delloro.com/news/microwave-transmission-equipment-market-increased-6-percent-in-3q-2020-according-to-delloro-group/

Thursday, October 29, 2020

Dell'Oro: SASE market to grow at 116% CAGR

The emerging Secure Access Service Edge (SASE) market is expected to grow at a compounded annual growth rate of 116 percent over the next five years (2019-2024), according to a new report from Dell'Oro Group.  

SASE comprises the integration of SD-WAN, Secure Web Gateway, and Firewall technologies that brings networking and security into a unified, cloud-based service offering to increase the scalability, agility, and security of the network while reducing the total cost of ownership.


“SASE holds great appeal because it unifies and simplifies networking and security across a wide variety of network use cases, ranging from larger headquarter/branch networks down to individual users,” said Mauricio Sanchez, Research Director at Dell’Oro Group. “Over the next five years, we expect the initial thrust for SASE to come from small to medium enterprises, for whom unification and simplification rank high, but also expect larger enterprises to begin pivoting.” 

Additional highlights from the SASE 5-Year Forecast Advanced Research Report:

Compared to the hardware, the software will account for the vast majority of SASE revenue and is expected to continue increasing its contribution over the next five years.

The combination of software and hardware sold as physical appliances will account for the vast majority of SASE revenue in the near-term. However, in the long-term will switch to revenue from cloud-hosted Software-as-a-Service (SaaS).

https://www.delloro.com/advanced-research-report/secure-access-service-edge-sase/



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.

https://www.idc.com/getdoc.jsp?containerId=prUS46934520

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.


Sunday, September 27, 2020

GSA: Over 5.5 billion LTE subscriptions in service

 As the end of Q2 2020 there were 5.55 billion LTE subscriptions worldwide, according to the latest data from Omdia and the Global mobile Suppliers Association (GSA), accounting for 60.4% of all global mobile subscriptions.

Nearly 800 million LTE subscriptions were added in the preceding 12 months, representing a 16.7% YoY growth.

Some additional highlights from GSA:

  • 5G subscriptions doubled in the second quarter of 2020 to reach at least 137.7 million globally (representing 1.5% of the entire global mobile market).
  • There will be nearly 10.30 billion mobile subscriptions by the end of 2025.
  • LTE is expected to reach its peak point in terms of technology market share at the end of 2021 (at 63.3%), and to reach its peak point in terms of subscriber numbers at the end of 2022 (at 6.07 billion subscribers).
  • From 2023 the LTE market is forecast to start to decline slowly, as customers migrate to 5G.
  • Between end 2020 and end 2025, the share of the market represented by GSM subscriptions will fall from 15.1% to 5.6%, and the share represented by W-CDMA will decline from 19.4% to 11.3%.
  • By the end of 2025, 5G will account for nearly 30% of the global market (at 3.03 billion subscriptions), although LTE will still be dominant at 53.5% of all global mobile subscriptions.

Thursday, September 24, 2020

GSA: 101 commercial 5G networks now operating in 44 countries

A total of 101 mobile operators in 44 countries/territories have now launched one of more fully commercial 3GPP-compliant 5G services, according to the Global mobile Suppliers Association (GSA).

Of these commercial networks, GSA data records that there are now 94 operators live with 3GPP-compliant 5G mobile services (up from 63 at the end of March 2020), while 37 have launched 3GPP-compliant 5G FWA or home broadband services (up from 34). 

As of September 2020, the GSA GAMBoD database included detailed data and analysis on a total of 397 operators in 129 countries that have announced investment in 5G, including trials, acquisition of licences, planning, network deployment and launches. 

“5G remains on track to become the fastest adopted mobile technology ever,” said Joe Barrett, President, Global mobile Suppliers Association. “There are now over 400 announced 5G devices; 5G subscriptions are doubling quarter on quarter; there are 20 commercially available 5G mobile processors and platforms and eight discrete 5G modems from five different semi-conductor companies. With over 100 commercial 5G networks now launched, and many more still being invested in by operators worldwide, we are seeing the mobile industry working together to drive 5G uptake at an unprecedented rate.”

https://gsacom.com/paper/5g-market-status-september-2020-snapshot/?utm=reports5g



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

Dell’Oro: Open RAN market to eclipse $5 billion

The worldwide sales of Virtualized Open RAN technologies are forecasted to grow at double-digit rates over the next five years with cumulative Open RAN investments – including hardware, software, and firmware excluding services – projected to surpass $5 B over the forecast period, according to a new report from Dell'Oro Group.

“At a first glance it might appear overly optimistic with a baseline scenario suggesting a new technology, which remains relatively untested and some officials believe would need a decade to get off the ground, would be able to become a billion-dollar market comprising a sizable portion of the overall RAN segment in just half a decade,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “At the same time, the momentum is improving, and we have adjusted the outlook upward to reflect a confluence of factors including promising results from initial commercial deployments, growing support from the incumbent RAN suppliers, and increased geopolitical uncertainty acting as a catalyst for operators to rethink their supplier strategies,” continued Pongratz.

Additional highlights:

  • Cumulative Virtualized RAN revenues—here defined as the proportion of RAN baseband/compute capex that will utilize general-purpose processors for CU and/or DU—are projected to approach $3 B to 5 B over the next five years.
  • Cumulative Open RAN radio shipments – including macro and small cells – are projected to surpass 1 M over the forecast period.

https://www.delloro.com/news/open-ran-market-expected-to-eclipse-5b/

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, August 30, 2020

Crehan: Data center Ethernet switch shipments up 12% in 1H2020

Despite COVID-related supply and demand disruptions, customers deployed more data center Ethernet switches in the first half of 2020 than they did in the same year-ago period, according to a recent report from Crehan Research Inc. Port shipments increased by 12% year-over-year, resulting in a new record high.

Hyperscale cloud service providers and China were significant contributors to the market’s growth, according to the report. The hyperscale cloud service provider’s contribution was reflected in the especially strong growth of 100 gigabit Ethernet (GbE) and 25GbE – a preferred data center networking architecture within this customer segment. In fact, 100GbE and 25GbE combined had a 40% year-over-year increase, comprising a majority of total data center switch port shipments.

“This robust shipment growth, even in the face of COVID disruptions, is a reflection of the critical nature of data center networks in delivering needed services to businesses, homes
and governments,” said Seamus Crehan, president of Crehan Research.

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

  • Cisco accounted for the majority of data center switch shipments and saw stable year-over-year market share.
  • As a result of its strong presence in the hyperscale cloud service provider segment, Arista was a key driver of the 100GbE switch growth, holding the top share position in this segment.
  • In correlation with the strong growth in China, H3C and Huawei gained additional market share.
  • Nvidia, through its Mellanox acquisition, saw a doubling of its data center switch shipments, on the strength of its Spectrum-based 100GbE switches.
  • “Back in January 2017, we forecast that combined shipments of 100GbE and 25GbE would comprise over half of all data center Ethernet switch shipments by 2021,” Crehan said.
  • “These recent results show that the transition to higher networking speeds that underpin modern data center architectures is happening even faster than expected.”

Tuesday, August 11, 2020

Dell'Oro: Network Security and ADC market to grow at 6% CAGR

The Network Security and Data Center Appliance market, consisting of the Firewall, Content Security, Intrusion Detection System and Intrusion Prevention System (IDS and IPS), and Application Delivery Controller (ADC) markets, is forecasted to grow at 6% five-year CAGR and go from $14 B in 2019 to $19 B in 2024, according to Dell'Oro Group's newly published 5-Year Forecast report.

Some highlights:

  • The ongoing COVID-19 pandemic will continue to impact the market both negatively and positively throughout 2020 and into the first half of 2021, assuming that an effective therapy or a vaccine is developed that allows society to restabilize.
  • In aggregate, the network security market, which consists of the Firewall, Content Security, IDS, and IPS markets, will continue to experience both positive and negative factors. The negative factor of delayed spending will have a slight advantage, however, leading to flat Y/Y growth in 2020.
  • Dell'Oro expects that post-pandemic, the network security market will return to the overall growth of 8% Y/Y from 2021 to 2024 and reach $17.1 B in 2024.
  • The network security market will vary significantly from historical growth trends during the pandemic. The report predicts that the Content Security and Firewall market will rebound and return to nominal growth post-pandemic. However, the IPS and IDS market will not and will continue to its long decline.
  • During the pandemic, the ADC market will be affected by both positive and negative factors. Overall, we anticipate that the positive factor of surge spending will keep growth in positive territory at 1% Y/Y in 2020.
  • Post-pandemic, we expect that the ADC market will accelerate slightly faster than Dell'Oro predicted in its previous forecast due to the combination of positive factors ranging from market demand and vendor dynamics. The five-year CAGR forecast is 1% versus our prior forecast of flat growth.

Monday, August 3, 2020

Dell'Oro: Network equipment services market returning to growth

Following five consecutive years of market contraction, the network equipment services market is returning to growth, growing slightly in 2019 due to positive developments with Network Rollout Services and Consulting Service, according to the latest Dell'Oro Network Equipment Service Market advanced research report. This growth is offset by declines in Managed Services this year.

Some highlights:

  • Managed Services is expected to weigh on the market in the near term as vendors continue to exit contracts that are unprofitable and non-strategic.
  • Network Equipment Services are becoming more complex.
  • Following five years of dynamic share shifts, the top three vendors—Huawei, Ericsson, and Nokia—have held their market share for the past three years. Together these three vendors accounted for about 75 percent of the NE Services market in 2019.

http://www.delloro.com

Sunday, July 26, 2020

Dell'Oro: Worldwide data center CAPEX continues to grow

Data center capex, which includes capex for servers and other data center infrastructure equipment, is forecasted to grow at a 6% CAGR to just over $200 B over the next five years, according to Dell'Oro Group. Growth is forecasted to be mixed depending on the customer segment. The Cloud, which already accounts for more than 60% of the worldwide data center capex, will continue to gain momentum over Enterprise/On-premise data center deployments. Edge data centers deployed over Telco networks could emerge in the longer-term horizon.

Capex on servers, which generally accounts for nearly half of the data center capex, may be influenced by the following factors:

  • Change in server unit demand from Cloud capacity and digestion cycles.
  • Market volatility of commodity pricing of components such as memory.
  • Server refresh cycles, which could prompt the replacement of aged servers and drive new deployments, could impact server architecture and pricing.
  • Servers also drive the demand for auxiliary data center infrastructure equipment such as networking switches, storage systems, and facilities.


The COVID-19 pandemic is expected to profoundly disrupt global demand for data center infrastructure equipment in 2020. Impacted vertical industries, especially brick-and-mortar retail, travel, hospitality, and small and medium enterprises, have seen a pull-back in IT spending as they wait for the business climate to stabilize. As enterprises seek to conserve capital, Public Cloud, which offers a flexible and consumption-based infrastructure, could help meet the growing demands of remote work and distance learning. The COVID-19 pandemic and the ensuing recession may have the long-lasting effect of accelerating the permanent migration of certain industries and workloads to the Cloud.

Market and Technology Trends to Watch Out For

  • The Top 4 U.S. Cloud service providers—Amazon, Facebook, Google, and Microsoft—are positioned to continue their momentum of expansion over the next five years. Servers will continue to be consolidated in fewer mega Cloud data centers that could potentially provide greater capacity than the same number of servers spread out across thousands of Enterprise data centers.
  • The Top 4 U.S. Cloud service providers have been prolonging the useful life of servers in an effort to lower server depreciation expense while maintaining high efficiencies and reliability of their server fleet.
  • The Intel server processor refresh cycles have historically influenced IT spending. While the major Cloud service providers typically ramp server capacity outside of the processor refresh cycle, the upcoming Intel 10 nm Whitley server platform refresh due later this year could generate an uplift on server spending. Viable alternatives to Intel processors, AMD EPYC and ARM, for server and storage system applications are starting to materialize in certain markets.
  • Various open-source organizations have come together to share and standardize best practices in the design of efficient, scalable, and sustainable data center infrastructure. The Open Compute Project (OCP), in particular, has introduced various technological innovations in the areas of server and server connectivity, rack architecture, and networking switches, which could shape the future development of data center infrastructure.


https://www.delloro.com/news/worldwide-data-center-capex-to-grow-6-percent-cagr-by-2024-2/

Wednesday, July 22, 2020

Dell'Oro: RAN investments to surpass $200 billion

Dell'Oro Group is forecasting that the RAN market will grow at a healthy pace over the next three years, before growth tapers off in the outer part of the forecast period, resulting in a mid-single digit CAGR between 2018 and 2022. Cumulative investments over the 2019-2024 period are expected to eclipse $200 billion.

Some highlights of Dell'Oro's 5-Year RAN Forecast:

  • The Millimeter Wave outlook has been revised upward driven by improved momentum in the Asia Pacific region.
  • The pickup in mid-band deployments has propelled the demand for Massive MIMO. In this forecast, 5G NR Massive MIMO is projected to comprise more than half of the cumulative 5G NR capex.
  • The underlying assumptions driving the regional projections remain fairly unchanged, with the APAC region being the main near-term growth vehicle.
  • With more clarity about the 5G rollout plans in the North America region, we have adjusted the near-term outlook upward and now forecast the North American RAN market to continue advancing over the near-term.
  • Global macro base station (BTS) shipments are projected to remain elevated between 2020 and 2022, underpinning projections that 5G activity is set for an upturn. This positive momentum will eventually slow, resulting in some softness in the outer part of the forecast period.
  • The high level small cell vision has not changed. We expect unlicensed WiFi systems to coexist with cellular technologies. For upper mid-band deployments, operators will need to accelerate indoor deployments rapidly while the sub 6 GHz micro adoption phase will be more gradual.
  • Since the last forecast, we have adjusted the outdoor small cell outlook upward, driven primarily by a more favorable Millimeter Wave forecast.
  • Fixed Wireless Access (FWA) Radio Access Network (RAN) investments, including mobile network and dedicated fixed networks, are projected to comprise a growing share of the overall RAN capex envelope over the next five years, reflecting the size of the potential upside, various technology advancements, and improving market sentiment for both basic and high performance connectivity

https://www.delloro.com/news/radio-access-network-investments-to-surpass-0-2-trillion/

Tuesday, July 21, 2020

Dell'Oro: Sustained growth for the Optical Transport Market

The Dell'Oro Group is forecasting the Optical Transport market, largely comprised of DWDM systems, to expand in 2020 and for the next five years, reaching nearly $18 billion.

Some highlights from Dell'Oro's Optical Transport five-year forecast:

  • By 2024, nearly 30 percent of wavelength shipments will be from an 800 Gbps-capable line card. More than half of these line cards are expected to be used at 400 Gbps.
  • The next wavelength speed following 800 Gbps will be 1200 Gbps (1.2 Tbps). Based on the timing of past coherent DSP introductions and first-line card shipments, we anticipate 1.2 Tbps-capable line cards to enter the market in the 2023-2024 time period (but more likely in 2024).
  • Demand for Optical Transport gear for data center interconnect (DCI) is expected to take a turn in the near future.
  • Disaggregated WDM transponder unit sales are a bright spot of growth, annually growing at a double-digit percentage rate.
  • 400ZR will moderate the market’s growth.

https://www.delloro.com/news/optical-transport-market-to-expand-for-many-more-years-reaching-nearly-18-billion/

Sunday, July 19, 2020

LightCounting: Sales of optics to cloud companies on pace

Despite supply chain disruptions from the COVID-19 pandemic, sales of optical components and modules to cloud companies seem to remain on track, according to LightCounting's new 2020 Mega Datacenter Optics Report.

The report provides sales projections of more than 50 product categories of Ethernet optical transceivers, DWDM optics, Active Optical Cables (AOCs) and Embedded Optical Modules (EOMs), segmented into three main applications: telecom, enterprise and cloud. The Cloud segment includes optics used inside the mega-datacenters of Cloud companies as well as in DCI routes.

"The COVID-19 pandemic brought in a new set of disruptions in early 2020. Many projects were delayed, including construction of new datacenters. Facebook postponed planned deployments of 200GbE until 2021, but ongoing deployments of 400GbE at Amazon and Google seem to remain on schedule and the market for Ethernet transceivers as a whole is expected to show modest growth in 2020. Demand for 100GbE optics from Chinese Cloud companies is likely to set a new record this year."

"With growing anti-globalization sentiment around the world, we expect that regional and national Cloud companies will take a lead in providing Cloud services. It will take many years for these companies to reach the scale of the leading American and Chinese Cloud giants, which translates to a bit slower growth for sales of optics to the Cloud segment. Emerging AI applications and growth in edge datacenters create additional demand for high speed optics, including AOCs and DWDM connections."


https://www.lightcounting.com/light-trends/sales-optics-cloud-companies-seem-be-largely-immune-covid-19/