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

Sunday, June 28, 2020

Global 5G connections reach 63.6 million

There are now over 63.6 million 5G connections globally as of Q1 2020, which represents 308.66% growth over Q4 2019, according to 5G Americas and data from Omdia. The forecast predicts 238 million 5G connections globally by the end of 2020, of which North America will account for 10 million connections.

Chris Pearson, President, 5G Americas said, “Globally, 5G remains the fast-growing generation of wireless cellular technology ever, even as the world is gripped with a pandemic. In North America, we are seeing consistent, strong uptake of new 5G subscribers as new devices have been released that can take advantage of low-band and millimeter wave frequencies. At the same time, new network capabilities are being added.” 

Also cited by 5G Americas:

  • Globally, there are now 82 5G commercial networks, a number which is expected to more than double to 206 by the end of 2020, according to data from TeleGeography. 
  • There are now over 100 commercial 5G device models available globally, according to the Ericsson Mobility June 2020 Report, with increasing support for low-band, mid-band and millimeter (mmWave) frequency bands.
  • Regionally by the end of Q1 2020, North America had 1.18 million 5G connections and 494 million LTE connections. This amounted to 100% growth in 5G, a gain of 591 thousand 5G connections over the quarter and 2.34% growth in LTE, a gain of 11.3 million LTE connections over the quarter. 
  • For Latin America and the Caribbean, Q1 2020 saw 3004 5G subscriptions (142.85% Q4 2019 to Q1 2020 growth) and 372 million LTE subscriptions (3% Q4 2019 to Q1 2020 growth), respectively. 


https://www.5gamericas.org/5g-continues-progress-despite-covid-19/

IDC predicts 2.8% decline in Worldwide Services Market

IDC is now forecasting a 2.8% decline in worldwide IT services and business services this year due to COVID-19, however, the forecast is calling for a 1% to 1.4% uptick in 2021.

In April, IDC predicted this market would decline 1.1% in 2020, so the new forecast is more pessimistic.

IDC said the newest forecast is based on the Economist Intelligence Unit's May forecast for worldwide GDP in 2020, which will likely contract by around 4.4%, more than twice as much as the March forecast. After almost four months of shutdowns across most developed markets, the economic downturn in the first half of 2020 will be so severe that even a robust recovery in the next six months will not offset it.

"Over the last few months of shutdowns around the world, services providers have largely shifted clients' core IT and business operations to 'work from home' environments relatively overnight without major hiccups," said Lisa Nagamine, research manager with IDC's Worldwide Semiannual Services Tracker. "This further demonstrates how adaptive and resilient vendors and buyers can be in the 'digital age'."

"We will continue to see the services market growth outpace GDP growth, even during a crisis like this," said Xiao-Fei Zhang, program director, Global Services Markets and Trends. "The pandemic is clamping down on discretionary spending, and puts the brake on many projects for now, but this will be somewhat cushioned by managed services and support services contracts that support core operations of large enterprises and government agencies."

Some additional highlights from IDC:

  • The Americas services markets are now forecast to decline 2.5% year over year in 2020, compared to the March forecast of nearly flat growth. 
  • IDC lowered the US growth forecast to -2.7% in 2020. The project-oriented markets, particularly business consulting, bore the brunt as large US consultancies have already announced workforce reductions worldwide. 
  • IDC also tempered the 2020 outlook for managed services by roughly 1%, now down 1.6%. The outlook for the support services market is unchanged and remains at -1.0% with growth in hardware and software support offset by sharp declines in training and education. 
  • Services markets in Canada also saw a sharper decline in 2020 and weaker recovery is expected across most foundation markets in the coming years, reflecting the gloomier economic outlook as the shutdown drags on. 
  • Latin America will continue to grow but will slump to less than 2% for 2020 with the outlook remaining unchanged from the March forecast.
  • Western Europe will decline 5.2% year over year in 2020 moved downward by almost one percentage point from the March forecast.
  • Central & Eastern Europe's 2020 short-term outlook was lowered while the mid- and long-term growth improved. 
  • The Middle East & Africa market will contract by more than 5% in 2020 as major markets in the region are also flanked by shutdowns and the collapse in oil prices. 
  • Japan will contract this year by 2.8% in 2020, revised downward by more than 1 percentage point with more economic metrics, such as weaker consumer spending in April and May, pointing to a weaker economy. 
  • IDC still expects the China market to deliver growth of 2.7% for 2020.


https://www.idc.com/getdoc.jsp?containerId=prUS46637720

Thursday, June 25, 2020

IDC: Cloud IT infrastructure spending up 2% in Q1

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

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


Some highlights:

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


https://www.idc.com/getdoc.jsp?containerId=prUS46639820

Tuesday, June 23, 2020

GSA tracks growth of 5G in mmWave spectrum.

Ninety-seven operators in 17 countries/territories hold public licences (many of them regional) enabling operation of 5G networks using mmWave spectrum, according to a new report from GSA.

Some highlights:

  • twenty-two operators are known to be already deploying 5G networks using mmWave spectrum.
  • thirteen countries/territories have announced formal (date-specified) plans for assigning frequencies above 24 GHz between now and end-2021.
  • eighty-four announced 5G devices explicitly support one or more of the 5G spectrum bands above 24 GHz (though note that details of spectrum support are patchy for pre-commercial devices), up from 59 at the end of November 2019. Twenty-seven of those devices are understood to be commercially available.
  • The 24.25–29.5 GHz range covering the overlapping bands n257 (26.5–29.5 GHz), n258 (24.25–27.5 GHz) and n261 (27.5–28.35 GHz) has been the most-licensed/deployed 5G mmWave spectrum range to date.
  • One hundred and twenty-three operators in 42 countries/territories are investing in 5G (in the form of trials, licences, deployments or operational networks) across the 24.25-29.5 GHz spectrum range.
  • Seventy-nine operators are known to have been licensed to deploy 5G in this range.
  • Twenty-one operators are understood to be actively deploying 5G networks using this spectrum.
  • Band n260, covering 37–40 GHz, is also used, with 33 companies in six countries/territories investing in networks using this spectrum. Of those, 32 hold licences (with the majority of those 32 based in the USA and its territories). Three operators in the USA have launched 5G using band n260.
  • Awards and assignments for mmWave spectrum (2015 onwards)


https://gsacom.com/

Sunday, June 21, 2020

LightCounting: Optical tranceiver market down 12% in Q1 due to COVID

First quarter 2020 revenues of optical transceiver and component vendors declined 12% sequentially, after reaching a new high in Q4 2019, due to the global pandemic, according to a new report from LightCounting. The report finds that companies located in China were more heavily impacted in Q1 because of the complete shutdown of factories and construction in many parts of that country. Alibaba for example spent considerably less than in Q1 2019, simply because planned construction could not proceed and equipment was in short supply.

LightCounting also finds that Huawei lost some share in 100G port shipments, while d Accelink and HG Genuine, located in Wuhan, saw revenues plummet by 30-50% sequentially.

LightCounting said it remains confident that ICP spending will continue to be a strong driver of growth in the optical transceiver market. The most recent data shows that cloud revenues of the hyper-scalers continue to grow faster than other business segments, and operate at higher profit margins – ICPs would be extremely foolish to starve their cash cows of needed infrastructure.

https://www.lightcounting.com/light-trends/no-surprise-q1-sales-reduced-covid-19-gradual-improvement-expected/


Sunday, June 14, 2020

LightCounting: Growth in Silicon Photonics

The market for silicon photonic-based products, including optical transceivers, active optical cables (AOCs) and electro-optic modulator (EOM), will increase from 14% in 2018-2019 to 45% by 2025, as the market returns to double digit growth over the next 5 years, according to a new report from LightCounting.

Some highlights from LightCounting’s Integrated Optical Devices Report:

  • Massive adoption of optical engines co-packaged with switching ASICs and FPGAs seems to be just around the corner. There are several optical transceivers on the market now, enabled by 2.5D and 3D multi-chip integration. Not all of these co-packaged chips are based on CMOS technology, but the share of CMOS is growing, and this is impacting the optics as well.
  • Acacia’s latest version of high-speed coherent DWDM transceivers is a great example. It combines a SiP-based photonic integrated circuit (PIC) with a CMOS-based DSP into a single 3D-stacked assembly, which also includes a modulator driver and TIA chips. The chips are interconnected by vertical copper pillars, to reduce power losses on RF connectors and increase speed. It is powered by an external narrow-linewidth tunable laser, which requires temperature stabilization, but the SiP-based PIC works fine in one stack with the hot ASIC.
  • The first 3D stacked design of an Ethernet transceiver was introduced by Luxtera (now Cisco) a few years ago. 2.5D integration combines multiple chips by placing them on a common substrate rather than staking them vertically. This approach is more suitable for integrating chips made of different materials, while offering similar benefits of higher speed and lower power. However, the better performance and reliability of high-speed SiP-based modulators tilts the scale in favor of this technology for both 2.5D and 3D integration.
  • The first 400GbE transceivers, sold in 2019-2020, use InP-based devices, but we expect that SiP-based 400GbE products will gain share in 2021-2025. LightCounting’s list of TOP 10 transceiver suppliers included three switch vendors in 2019: Broadcom, Cisco and Intel. All these companies are committed to CMOS and SiP technologies and they will be among the leading suppliers of 400GbE transceivers.
  • Some of the first coherent DWDM 400ZR modules will also use InP modulators, but a majority will be based on SiP, as sales of this product will start in 2020. Apart from Acacia, which is becoming part of Cisco now, Ciena, Huawei, Infinera, Nokia and ZTE also plan to manufacture 400ZR and ZR+ modules. Most of these companies are likely to use SiP for 400ZR/ZR+ designs.

LightCounting’sIntegrated Optical Devices Report provides an in-depth analysis of the impact made by integration on the market for optical transceivers and related components in 2010-2019. It also presents a forecast for shipments and sales of discrete and integrated products based on InP, GaAs and SiP technologies for 2020–2025. The forecast is segmented by main applications, including Ethernet, WDM, Active Optical Cables (AOCs) and Embedded Optical Modules (EOMs) and a few others. Products are sorted by data rate, reach, and form factor into more than 150 categories. The report also discusses the supply chain for SiP products and profiles many of the start-up companies developing integrated optical devices. A forecast for the adoption of co-packaged optics in 2023-2028 is also included.

https://www.lightcounting.com/light-trends/adoption-silicon-photonics-reaching-inflection-point/

Dell'Oro: Cloud data center CAPEX to grow at double digit rate

Cloud data center capex is forecasted to grow double-digits, although growth among Cloud service providers look to be mixed, according to a new report from Dell'Oro Group. Meanwhile, a sharp decline in Enterprise IT spending is expected, as macroeconomic uncertainties will likely curb capital investments.

“Data center capex returned to higher growth in 1Q 2020, as some of the major Cloud service providers had reverted from capacity digestion to expansion phase,” said Baron Fung, Research Director at Dell’Oro Group. “Stay-at-home orders around the world are placing excess burdens on Cloud infrastructure, prompting some Cloud service providers to bolster capacity in critical areas of the network. However, infrastructure appropriated to advertising, which is facing headwinds this year as enterprises slash marketing budgets, will likely be curtailed,” explained Fung.

Additional highlights from the 1Q 2020 Data Center Capex Quarterly Report:

  • The Top 10 Cloud service providers spent $15.4 billion, in aggregate, on data centers, a 15 percent year-over-year (Y/Y) increase.
  • Worldwide Server revenue grew 1 percent Y/Y, as the Top 4 Cloud service providers expanded server capacity.
  • Shipment of white box servers, which are mainly deployed by the major Cloud service providers, grew to a record 1.3 million units.
  • Enterprise data center capex is projected to decline double-digits in 2020

https://www.delloro.com/news/cloud-data-center-capex-forecasted-for-growth-to-meet-public-cloud-demand-in-2020/

Thursday, June 11, 2020

Nokia says 5G fixed wireless access is a top use case

Consumers across the world see 5G Fixed Wireless Access (FWA) as the most desirable 5G use case, according to a new study commissioned by Nokia and conducted by Parks Associates.

The study, which was conducted by Parks Associates, surveyed 3,000 people in the UK, US and South Korea and examined consumer understanding and demand for 5G services across six different use cases including autonomous vehicles, video surveillance and immersive technologies. The research was conducted prior to the global COVID-19 pandemic.



Some highlights:

  • 76 percent of all respondents regard FWA as the most appealing use case overall, with 66 percent claiming they would subscribe to 5G FWA if it cost the same as their current broadband service and delivers the same or better performance. 
  • 90 percent rated high-quality, uninterrupted video streams a “very valuable” aspect of 5G. 
  • A majority of consumers find 5G video use cases attractive, with 66 percent rating video capture and streaming applications appealing, and 69 percent rating video detection and alerting appealing. More than one-third of consumers found AR experiences for remote commerce appealing even before the COVID-19 crisis. The need and appeal has likely increased with social distancing.
  • Nearly half of those who work remotely indicate a strong willingness to switch providers for 5G service and more likely to intend to purchase a 5G phone. Greatly expanded remote work experience may drive plan and phone upgrades.
  • Nearly two-thirds of early 5G users are highly satisfied with the speeds they experience on 5G networks, compared with less than half of 4G users.
  • 45 percent of all consumers find connected car concepts appealing with navigation and safety capabilities seen as most valuable, but this jumps to 73 percent amongst vehicle owners. 53 percent of vehicle owners said they would be interested in bundling car connectivity with a 5G data plan.
  • Two-thirds of consumers find 5G-enabled Augmented Reality and Virtual Reality services appealing and 56 percent were drawn to cloud gaming.


Tuesday, June 9, 2020

IDC: Worldwide server market revenue dips 6% in Q1

Vendor revenue in the worldwide server market declined 6.0% year over year to $18.6 billion during the first quarter of 2020 (1Q20), according to a new report from IDC. Worldwide server shipments declined 0.2% year over year to just under 2.6 million units in 1Q20.

In terms of server class, volume server revenue was down 2.1% to $15.1 billion, while midrange server revenue declined 23.0% to just under $2.6 billion, and high-end systems declined by 9.1% to just under $1.0 billion.



"Server market performance was relatively similar to the fourth quarter, albeit a bit more muted, with bright spots including the ODM Direct vendor group realizing solid demand from its core hyperscaler and cloud provider customer set, and continued strength in the non-x86 server space," said Sebastian Lagana, research manager, Infrastructure Platforms and Technologies at IDC. "That said, the OEM market faced stiff headwinds due to a combination of slowing enterprise demand for x86 servers and supply chain constraints, both driven largely by macroeconomic impacts."

Some highlights:

  • The number one position in the worldwide server market in 1Q20 belonged to Dell Technologies with a revenue share of 18.7%. 
  • HPE/New H3C Group took the second position at 15.5%, followed by Inspur/Inspur Power Systems at 7.1%. 
  • Lenovo and IBM were tied for the fourth position with market shares of 5.6% and 4.8%, respectively. 
  • The ODM Direct group of vendors accounted for 25.9% of total server revenue and was up 6.1% year over year to nearly $4.83 billion. 
  • Dell Technologies led the worldwide server market in terms of unit shipments, accounting for 18.4% of all units shipped during the quarter.

https://www.idc.com/getdoc.jsp?containerId=prUS46534520

Sunday, June 7, 2020

IDC: Worldwide Ethernet Switch and Router markets decline in Q1

The Worldwide Ethernet switch market recorded $6.16 billion in revenue in the first quarter of 2020 (1Q20), a decrease of 8.9% year over year, according to a new report from IDC, while the worldwide total enterprise and service provider (SP) router market revenues fell 16.4% year over year in 1Q20 to $2.99 billion.

"Weakness in the Ethernet switch and routing markets at the end of 2019 continued into the first quarter of 2020, which was exacerbated by the onset of the novel coronavirus and subsequent lockdown of economies around the globe as 1Q20 progressed," said Brad Casemore, research vice president, Datacenter and Multicloud Networks. "Meanwhile, diverging trends intensify in the Ethernet switch market as hyperscale and cloud providers invest in greater datacenter scale and higher bandwidths while enterprises continue to refresh campus networks with lower-speed switch ports."



Some highlights from IDC Quarterly Ethernet Switch Tracker and IDC Quarterly Router Tracker:


  • Despite the Ethernet switch market growing 2.3% for the full year 2019, in the fourth quarter of 2019 the market fell 2.2%, indicating that the market's slow end to 2019 spilled into 1Q20. The first quarter of 2020 was also impacted by the COVID-19 pandemic that swept across the world throughout the quarter, specifically disrupting supply chains while weakening customer demand. IDC expects the negative impact of COVID-19 on both the Ethernet switch and router markets to continue in the second quarter of 2020.
  • From a geographic perspective, the Middle East and Africa (MEA) region declined 2.9%, with Saudi Arabia's market off 12.7% year over year. Across Europe, growth was uneven. The Central and Eastern Europe (CEE) region grew 3.7% compared to a year earlier, with Russia up 23.2% year over year. The Western Europe market fell 12.9% with Germany losing 10.6% year over year and the United Kingdom off 18.4% from a year earlier.
  • The Asia/Pacific region (excluding Japan and China) (APeJC) declined 7.0% year over year, with India off 11.3% and Australia declining 16.2% year over year. The People's Republic of China was down 14.6% year over year while Japan was relatively flat with a 0.1% increase compared to the first quarter of 2019. The Latin American market dropped 9.7% year over year, while the market in the United States declined 8.7% annually and Canada fell 7.2% year over year.
  • Port shipments for 100Gb switches rose 52.1% year over year to $5.5 million. 100Gb revenues grew 9.9% year over year in 1Q20 to $1.28 billion, making up 20.8% of the market's revenue. 25Gb switches also saw impressive growth, with revenues increasing 58.9% to $482.9 million and port shipments growing 67.7% year over year. Lower-speed campus switches, a more mature part of the market, saw mixed results in port shipments and revenue, as average selling prices (ASPs) in this segment continue to decline. 10Gb port shipments rose 3.9% year over year, but revenue declined 21.4%. 10Gb switches make up 24.8% of the market's total revenue. 1Gb switches declined 3.8% year over year in port shipments and fell 11.9% in revenue.1Gb now accounts for 39.0% of the total Ethernet switch market's revenue.
  • The worldwide enterprise and service provider router market decreased 16.4% on a year-over-year basis in 1Q20, with the major service provider segment, which accounts for 75.1% of revenues, decreasing 16.8% and the enterprise segment of the market declining 15.3%. From a regional perspective, the combined service provider and enterprise router market fell 29.4% in APeJC. Japan's total market grew 8.4% year over year and the People's Republic of China market was off 10.9%. Revenues in Western Europe declined 23.5% year over year, while the combined enterprise and service provider market in the CEE region declined 17.1%. The MEA region was down 5.2%. In the U.S., the enterprise segment was down 12.2%, while service provider revenues fell 19.6%, giving the combined markets a year-over-year drop of 17.5%. The Latin America market declined 15.9% on an annualized basis.
  • Cisco finished 1Q20 with a 12.0% year-over-year decline in overall Ethernet switch revenues and market share of 51.9%. In the hotly contested 25Gb/100Gb segment, Cisco is the market leader with 39.8% of the market's revenue. Cisco's combined service provider and enterprise router revenue declined 28.1% year over year, with enterprise router revenue decreasing 18.7% and SP revenues falling 33.8%. Cisco's combined SP and enterprise router market share stands at 36.3%.
  • Huawei's Ethernet switch revenue declined 14.0% on an annualized basis, giving the company a market share of 8.4%. The company's combined SP and enterprise router revenue declined 2.1% year over year, resulting in a market share of 28.8%.
  • Arista Networks saw its Ethernet switch revenues decline 18.7% in 1Q20, bringing its share to 6.7% of the total market. 100Gb revenues account for 73.7% of the company's total revenue, reflecting the company's longstanding presence at hyperscalers and other cloud providers.
  • HPE's Ethernet switch revenue increased 6.7% year over year, giving the company a market share of 6.2%, up from 5.3% market share the same quarter a year earlier.
  • Juniper's Ethernet switch revenue rose 14.1% year over year in 1Q20, bringing its market share to 3.3%. Juniper saw a 16.0% decline in combined enterprise and SP router sales, bringing its market share in the router market to 10.5%.

Dell’Oro: Data Center Switch market dropped 9% in Q1

The worldwide Data Center Switch market recorded its first decline in nine years, dropping 9 percent year-over-year in the first quarter, according to a new report from Dell'Oro Group.

1Q 2020 revenue level was also the lowest in three years. The softness was broad-based across all major branded vendors, except Juniper Networks and white box vendors. Revenue from white box vendors was propelled mainly by strong demand from Google and Amazon.

“The COVID-19 pandemic has created some positive impact on the market as some customers pulled in orders in anticipation of supply shortage and elongated lead times,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Yet this upside dynamic was more than offset by the pandemic’s more pronounced negative impact on customer demand as they paused purchases due to macro-economic uncertainties. Supply constraints were not major headwinds during the first quarter but expected to become more apparent in the next quarter,” added Boujelbene.

Additional highlights from the 1Q 2020 Ethernet Switch – Data Center Report:

  • The revenue decline was broad-based across all regions but was less pronounced in North America.
  • We expect revenue in the market to decline high single-digit in 2020, despite some pockets of strength from certain segments.


Dell’Oro: SD-WAN Market decelerated in Q1

The worldwide SD-WAN market continued to expand in the first quarter of 2020, but the 24 percent year over year growth rate was well below the 64 percent annual growth for 2019, according to a new report from Dell'Oro Group. The top five vendors, Cisco, VMware, Silver Peak, Versa, and Fortinet saw their combined revenue share climb above 60 percent in 1Q 2020.

“Demand for SD-WAN held up well in the first quarter, but supply chain disruptions induced by the COVID-19 pandemic caused a sharper deceleration in vendor revenue growth,” said Shin Umeda, Vice President at Dell’Oro Group. “We still expect the SD-WAN market to grow by double-digits this year, but with so much macroeconomic uncertainty, strong performance won’t be a shoo-in for all vendors,” added Umeda.

Additional highlights from the 1Q 2020 Router & Carrier Ethernet Switch (CES) Report:

  • Supply chain disruptions accounted for the majority of the Service Provider (SP) Router and CES Switch market decline in 1Q 2020.
  • The SP Router and CES market in China showed a modest decline in 1Q 2020, but upgrades for 5G infrastructure are expected to drive strong demand over the rest of 2020.

http://www.delloro.com

Monday, June 1, 2020

IDC: OCP-compliant hardware to grow at a 16.6% CAGR

Worldwide revenue from the Open Compute Project (OCP) infrastructure market will reach $33.8 billion in 2024, according to a new report from IDC, hitting a compound annual growth rate (CAGR) of 16.6% over the 2020-2024 forecast period. The forecast assumes a rapid recovery for this market in 2021-22, fueled by a robust economic recovery worldwide. However, a prolonged crisis and economic uncertainty could delay the market's recovery well past 2021, although investments in and by cloud service providers may dominate infrastructure investments when they occur during this period.

"By opening and sharing the innovations and designs within the community, IDC believes that OCP will be one of the most important indicators of datacenter infrastructure innovation and development, especially among hyperscalers and cloud service providers," said Sebastian Lagana, research manager, Infrastructure Systems, Platforms and Technologies.

"IDC projects massive growth in the amount of data generated, transmitted, and stored worldwide. Much of this data will flow in and out of the cloud and get stored in hyperscale cloud data centers, thereby driving demand for infrastructure," said Kuba Stolarski, research director, Infrastructure Systems, Platforms and Technologies at IDC.

Some highlights:
The compute segment will remain the primary driver of overall OCP infrastructure revenue for the coming five years, accounting for roughly 83% of the total market.
Despite being a much larger portion of the market, compute will achieve a CAGR comparable to storage through 2024. The compute and storage segments are defined below:
Spend on computing platforms (i.e., servers including accelerators and interconnects) is estimated to grow at a five-year CAGR of 16.2% and reach $28.07 billion. This segment includes externally attached accelerator trays also known as JBOGs (GPUs) and JBOFs (FPGAs).
Spend on storage (i.e., server-based platforms and externally attached platforms and systems) is estimated to grow at a five-year CAGR of 18.5% and reach $5.73 billion. Externally attached platforms are also known as JBOFs (Flash) and JBODs (HDDs) and do not contain a controller. Externally attached systems are built using storage controllers.

Sunday, May 31, 2020

Cignal AI: Network operators accelerate Capex in response to COVID-19

The effects of COVID-19 simultaneously catalyzed demand for transport equipment and paralyzed supply chains worldwide during the first quarter of 2020, according to Cignal AI’s latest Transport Hardware Report. Results show that sales of optical and packet hardware varied dramatically by region, product category, and vendor.

“Demand for equipment is solid right now, with one major operator reporting that 70% of its annual capex budget has already been spent,” said Scott Wilkinson, Lead Analyst at Cignal AI. “Operators are shifting demand forward to build capacity and inventory, and a decline in demand is likely to follow in the second half of the year.”



During Q1 2020, network operators accelerated orders and installations of new equipment to deal with vastly increasing network demand. Not all orders were intended for immediate deployment; operators also wanted extra inventory readily available in uncertain times. However, disruption in the component supply and equipment manufacturing chain, as well as travel and shipping restrictions prevented equipment companies from satisfying demand. Consequently, individual equipment vendor results varied depending on the sourcing of components and manufacturing.

Additional 1Q20 Transport Hardware Report Findings:
  • Most equipment vendors claimed a 5-10% reduction in sales due to COVID-19 operational issues. While demand sharply increased, the inability to get parts, manufacture, and deliver equipment reduced sales in all areas. This reduction was particularly true for sales of packet equipment by vendors such as Juniper Networks.
  • Ciena, Cisco, Infinera, and Nokia all gained 20% or more in YoY optical transport sales in North America this quarter. Packet sales in the region were down significantly, with supply chain issues compounding a continued drop in demand from service providers.
  • Transport equipment sales in China declined in the double digits as network operators and suppliers contended with increased network traffic demands and complex supply chain issues.

Vertical Systems Group: How will COVID-19 impact SD-WAN?

Following a triple-digit revenue increase in 2019 for U.S. Carrier Managed SD-WAN Services, the growth outlook for 2020 has been lowered to 17% due to the impact of COVID-19, according to ENS @SD-WAN research just released from Vertical Systems Group. Despite this market dip, the forecast shows measurable economic recovery during Q4 of this year, and a revenue rebound starting in 2021 that extends through 2024.

Vertical’s SD-WAN forecast incorporates government directives, macro-economic data, enterprise demand information and service provider feedback. Topline forecast assumptions are displayed in the timeline infographic shown above. Detailed timeline assumptions for this COVID-19 impact analysis are included in the latest ENS @SD-WAN research release, which covers projections through 2024 for U.S. revenue, billable sites installed and WAN connections.

Key 2020 Timeline Assumptions

  • January – February: The robust demand for managed SD-WAN services in 2019 continues into the first two months of 2020. New customer installations increase as orders from the previous year are fulfilled.
  • March – April: The COVID-19 pandemic emerges across the U.S., forcing business shutdowns and stay-at-home orders. Some planned SD-WAN implementations are deferred.
  • May – August: Gradual reopening of businesses proceeds subject to variable state-by-state guidelines. Some companies file for bankruptcy, particularly in hard hit verticals (e.g., retail, travel, etc.). The SD-WAN pipeline for new logo sales erodes.
  • September – October: Enterprises and suppliers adjust to new operations realities. An economic rebound begins to take hold.
  • November – December: Economic recovery gains momentum. SD-WAN sales increase and site installations accelerate.



https://www.verticalsystems.com/2020/05/28/statflash-sdwan-covid-2020/

Wednesday, May 27, 2020

Dell’Oro: Optical Transport Equipment sales for DCI up 13% in Q1

Sales of optical transport equipment used for data center interconnect (DCI) increased 13 percent year-over-year in 1Q 2020, according to a new report from Dell’Oro Group,. The top three vendors — Ciena, Cisco, and Infinera — with a combined share of over 70% benefited the most from the rising demand for data center connectivity.

“Data center interconnect continued to be an important application for optical transport equipment, especially in times like this,” said Jimmy Yu, Vice President at Dell’Oro Group. “While macroeconomic conditions will suffer this year due to the actions taken to contain the spread of COVID-19, we anticipate demand for data center connectivity will continue to rise as people rely more on cloud-based services,” added Yu.

Additional highlights from the 1Q 2020 Optical Transport Quarterly Report:

  • Spending on optical equipment for DCI was highest for metro spans in the quarter, outpacing the growth for DCI used in long haul spans.
  • Most companies purchasing DCI equipment use the highest available wavelength speeds, driving sharp demand for 400 Gbps wavelengths.
  • Cisco and Infinera, each gained 6 to 7 percentage points of data center interconnect market share in 1Q 2020 compared to 1Q 2019 as their customers buy more 600 Gbps-capable disaggregated WDM systems.

650 Group: Ethernet switch market dropped 10% YoY in Q1

The Ethernet Switch Market declined nearly 10% Y/Y on weak campus and data center results in 1Q20, declining to approximately $7 billion, according to a newly released report from 650 Group. The report also indicated significant regional differences amongst vendors, as well as aggressive ASP fluctuations in the market.

“The Ethernet Switch market contracted in the expected regions and verticals in 1Q20,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “Supply chain constraints in factories and components remain entering the last month of 2Q20. Certain component shortages will remain well into 2021 as vendors prioritize customers and products throughout the year.  Our vertical analysis of the campus and data center Ethernet switching markets indicates a different recovery rate and use of technology as the market begins to rebound in 2H20.  Digital transformation and the use of cloud platforms will be critical to companies going forward, especially as the digital divide increases across regions and customers.”

The 650 Group Quarterly Ethernet Switch report also indicates what impact the trade war is having on campus suppliers and the surge in 25 Gbps port shipments from H3C and Huawei.
The report highlights how campus Ethernet switching outperformed data center switching with new products from Arista, Cisco, Extreme Networks, and Juniper all ramping during the quarter.

Tuesday, May 26, 2020

Mobile operator survey: 81% say progress toward 5G is moving rapidly

Approximately 30% of mobile service providers are already proactively planning to add 5G standalone capabilities to their networks, and another 9 percent say their companies will move directly to standalone, according to a new survey conducted by Business Performance Innovation (BPI) Network.

Standalone 5G will require a whole new network core utilizing a cloud-native, virtualized, service-based architecture. Many respondents, in fact, say they are making significant progress toward network virtualization.


The new global study report, “Toward a More Secure 5G World,” which was developed in partnership with A10 Networks, finds that COVID-19 is not expected to significantly delay 5G deployments. The percentage of mobile service providers who say their companies are “moving rapidly toward commercial deployment” has increased significantly in the past year, climbing from 26 percent in a survey announced in early 2019 to 45 percent in the new survey. Virtually all respondents say improved security is a critical network requirement and top concern in the 5G era.

Among key findings of the survey:

  • 81% say industry progress toward 5G is moving rapidly, mostly in major markets, or is at least in line with expectations.
  • 71% expect to begin 5G network build-outs within 18 months, including one-third who have already begun or will do so in 2020.
  • 95% percent say virtualizing network functions is important to their 5G plans, and some three-quarters say their companies are either well on their way or making good progress toward virtualization.
  • 99% view deployment of mobile edge clouds as an important aspect of 5G networks, with 65% saying they expect edge clouds on their 5G networks within 18 months.


“Mobile operators globally need to proactively prepare for the demands of a new virtualized and secure 5G world,” said Gunter Reiss, worldwide vice president of A10 Networks, a provider of secure application services for mobile operators worldwide. “That means boosting security at key protection points like the mobile edge, deploying a cloud-native infrastructure, consolidating network functions, leveraging new CI/CD integrations and DevOps automation tools, and moving to an agile and hyperscale service-based architecture as much as possible. All of these improvements will pay dividends immediately with existing networks and move carriers closer to their ultimate goals for broader 5G adoption and the roll-out of new and innovative ultra-reliable low-latency use cases.”

“Our latest study indicates that major mobile carriers around the world are on track with their 5G plans, and more expect to begin commercial build-outs in the coming months,” said Dave Murray, director of thought leadership with the BPI Network. “While COVID-19 may result in some short-term delays for operators, the pandemic ultimately demonstrates a global need for higher speed, higher capacity 5G networks and the applications and use case they enable.”

Download the complimentary report at: http://bpinetwork.org/thought-leadership/studies/77/download-report-toward-a-more-secure-5g-world

Monday, May 25, 2020

Crehan: Server-class Ethernet adapter market up 30% YoY in Q1

Shipments of total server-class Ethernet adapters increased more than thirty percent year-on-year in the first quarter of 2020, according to a recent report from Crehan Research. This increase is the largest the market has had in over eight years – see accompanying figure – and resulted in record shipments. In correlation with these record shipments, server-class Ethernet adapter revenue also had a record quarter and posted an even higher growth rate.

“Data center operators added server networking capacity at record levels to ensure delivery of the digital-based services that have become so important as a result of the COVID-19 pandemic,” said Seamus Crehan, president of Crehan Research. “These services include telemedicine and food and merchandise delivery, as well as the enablement of working, schooling and entertainment from home. On top of this, data center operators had to ensure the continuity of existing bandwidth-hungry applications and initiatives in a very challenging and disrupted supply-chain environment.”

Other noteworthy results from Crehan’s Server-Class Ethernet Adapter report include:

  • The strength in the server-class Ethernet adapter market was broad-based with all speeds – from one gigabit Ethernet (GbE) up to 200GbE – experiencing shipment increases. However, 25GbE, 50GbE, and 100GbE growth was particularly strong during the quarter with combined shipments more than doubling year-over-year.
  • Intel accounted for the majority of total server-class Ethernet adapter shipment volumes and shipment growth.
  • Nvidia (Mellanox) comprised the majority share of shipment speeds of 25GbE-and-greater and drove most of the robust growth in this segment.
  • Marvell saw its 25GbE QLogic-based adapter shipments more than double year-over-year, as a result of strong blade server adoption of its FastLinQ products.
  • Vendor-built SmartNIC shipments more than tripled year-over-year but still comprised a relatively small portion of total server-class Ethernet adapter volumes. Broadcom’s Stingray product drove most of this growth.
“Given the migration to higher speed server-class Ethernet adapter connections, the bandwidth increase in the quarter was even higher than the shipment increase, which further accelerated a recent inflection in server networking bandwidth growth,” Crehan said.

Tuesday, May 19, 2020

Opengear: Estimated the cost of enterprise network outages

In the US, nearly two-fifths (38%) of senior IT decision-makers and network managers reported losing more than $1 million in the past 12 months, according to a recent study commissioned by Opengear, a Digi International company. More than half of survey respondents globally say they have had four or more network outages lasting more than 30 minutes in the past year, with outages costing half of the surveyed organizations worldwide between $300,000 and $6 million in downtime.

‘Measuring the True Cost of Network Outages,’ Opengear’s in-depth research study of 500 global senior IT decision makers, including 125 respondents from the US, also discovered that US businesses put significantly greater emphasis on network resilience than any other country surveyed. In fact, network resilience has become the top priority for 73% of US IT departments, as well as 70% of US companies at the board level. Globally, responses were at 49% and 47% respectively.

Some highlights of the study:

  • Although more than three quarters (78%) of organizations globally have set aside a specific budget to ensure its network resilience, almost half (49%) had outages increase by 10% or more over the last five years. 
  • Outages were even more prevalent in the US, with nearly one-third (32%) reporting an increase of 25% or more. 
  • More than four out of 10 (42%) US businesses reported that network outages took more than one working day on average to find and resolve after they were reported, with an average of nearly 10 hours across the country.


With many organizations running geographically spread networks, travel time to get engineers on site has become the most common challenge in resolving network issues quickly, according to more than two in five (41%) globally and over half (52%) in the US. But the US differs from other regions with the second most common challenge, inadequate network monitoring (41%); whereas globally, companies reported a lack of in-house engineering capabilities (40%).

Steve Cummins, Vice President of Marketing at Opengear, said “The true cost of a network outage is much more than just lost revenue. Our survey found that reduced customer satisfaction was the biggest impact of an outage according to 41% of respondents, ahead of data loss (34%) and financial loss (31%). Organizations need to think in advance about how they can avoid, and then recover from, an outage quickly before the consequences become severe. Given the time invested to resolve network outages and the costs incurred, finding a solution that addresses these is an urgent priority. This is where an out-of-band management solution can be highly beneficial. Companies around the world recognize that the ability to operate independently from the production network, and detect and remediate network issues automatically, can dramatically improve security (48%), save time (45%) and most importantly, reduce costs (41%).”

http://www.opengear.com