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

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

Tuesday, January 12, 2021

IDC: Public cloud IT infrastructure revenue growth stays strong

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

Some highlights:

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


IDC: PC sales rocket ahead at 26% growth rate

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

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

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


Wednesday, December 9, 2020

Dell'Oro: Strong demand for 25 Gbps Ethernet adapters

Strong demand for 25 Gbps Ethernet adapters propelled the market to the highest revenue of $638 million in 3Q 2020, according to a new report from Dell'Oro Group. Nvidia gained share on a one-time sale of Ethernet controllers and adapters sufficient to satisfy the multi-year demand of a Chinese OEM, presumed to be Huawei, ahead of its sourcing ban from US vendors.

“More than 3.3 million of 25 Gbps Ethernet controllers and adapters ports were shipped in 3Q20, surpassing the previous record set in the prior quarter, with strong demand from Tier 1 China-based Cloud SPs and Tier 1 server OEMs as they embraced the technology,” said Baron Fung, Research Director at Dell’Oro Group. “However, shipments of 50 Gbps Ethernet controller and adapter ports declined from the prior quarter as some of the Tier 1 Cloud service providers have entered a digestion cycle and reduced server deployments,” added Fung.


Additional highlights from the 3Q 2020 Ethernet Controller and Adapter report include:

  • Total Ethernet controller and adapter port shipments increased 8 percent quarter-over-quarter.
  • Shipments of 100 Gbps ports grew quarter-over-quarter to 425 K ports, an all-time-high, to support the growing demands of accelerated computing.
  • Amazon commanded 73 percent revenue share of the Smart NIC market in 3Q 2020. Broadcom led the Ethernet adapter vendors in port shipments, followed by Marvell and Nvidia.

Dell'Oro: Campus switch revenue returned to growth in Q3

Worldwide campus switch revenue recovered after two consecutive quarters of high single-digit decline, according to a new report from Dell'Oro Group. Huawei, HPE, H3C, and Arista Networks drove most of the growth in 3Q 2020 and comprised more than 28 percent of the market sales, up nearly three percentage points year-over-year (Y/Y).

Additional highlights from the 3Q 2020 Ethernet Switch – Campus Report:

The revenue recovery was broad-based across all major regions: North America, Europe, and the Asia Pacific, with the majority of the growth driven by North America.

5/5.0 Gbps port shipments were up 60 percent Y/Y, surpassing 1.5 M ports during the quarter as the pandemic is accelerating the adoption of higher speeds and new technologies.


“Government funding around the world and particularly in North America propelled growth in the market,” said Sameh Boujelbene, Senior Research Director at Dell’Oro Group. “Additionally, the market benefited from backlog fulfillment during the quarter as supply challenges improved from the first half of the year. While government funding may have benefited mostly the public sector and lower education verticals, we have started to see some signs of recovery in large and even some mid-size enterprises as they resumed spending on campus network upgrades,” added Boujelbene.

https://www.delloro.com/news/campus-switch-revenue-returned-to-year-over-year-growth-in-3q-2020/

IDC: Worldwide server market revenue up 2.2% in Q3

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

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

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

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


Sunday, December 6, 2020

Study: 5G is up to 90% more energy efficient per traffic unit than 4G

5G networks are up to 90 percent more energy efficient per traffic unit than legacy 4G networks, according to a new study by Nokia and Telefónica.

The research, which was conducted over a three-month period, focused on the power consumption of the Radio Access Network (RAN) in Telefónica’s network. 

Extensive testing examined eleven different pre-defined traffic load scenarios that measured the energy consumed per Mbps based on the traffic load distribution. The results highlighted that 5G RAN technology is significantly more efficient than legacy technologies when it comes to energy consumption per data traffic capacity with several hardware and software features that help to save energy. 

The study, which utilized Nokia’s AirScale portfolio, including AirScale Base Stations and AirScale Massive MIMO Active Antenna solutions, combined actual on-site base station energy consumption readings in different traffic load scenarios, ranging from 0 percent to 100 percent, as well as remote monitoring of actual power consumption through the network management systems.

The companies said that while 5G is a natively greener technology with more data bits per kilowatt of energy, further action is needed to enhance energy efficiency and minimize CO2 emissions that will come with exponentially increased data traffic. There are several energy-saving features at the radio base station and network levels, such as 5G power-saving features, small cell deployments and new 5G architecture and protocols, which can be combined to significantly improve the energy efficiency of wireless networks.

Juan Manuel Caro, Director of Operational Transformation at Global CTIO at Telefónica, said: “We are committed to supporting action on climate change and engender a sustainable culture throughout our entire company. We are proud to work collaboratively with Nokia on this project and others to address a range of initiatives including driving energy efficiencies in the 5G era.”

https://www.nokia.com/about-us/news/releases/2020/12/02/nokia-confirms-5g-as-90-percent-more-energy-efficient/

Monday, November 30, 2020

Ericsson: Mobile network data traffic up 50% from 3Q19 to 3Q20

Mobile network data traffic grew 50 percent between Q3 2019 and Q3 2020, according to the newly updated Ericsson Mobility Report.

A second key finding is that current 5G uptake in subscriptions and population coverage confirms 5G as deploying the fastest of any generation of mobile connectivity. Ericsson estimates that by the end of this year, more than 1 billion people – 15 percent of the world’s population – will live in an area that has 5G coverage rolled out. The company has raised its year-end 2020 estimate for global 5G subscriptions to 220 million, thanks largely to rapid uptake in China, reaching 11 percent of its mobile subscription base. 

Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: “This year has seen society take a big leap towards digitalization. The pandemic has highlighted the impact connectivity has on our lives and has acted as a catalyst for rapid change, which is also clearly visible in this latest edition of the Ericsson Mobility Report.

Additional highlights:

  • In 2026, 60 percent of the world’s population will have access to 5G coverage, with 5G subscriptions forecast to reach 3.5 billion.
  • North America is expected to end the year with about 4 percent of its mobile subscriptions being 5G. Commercialization is now moving at a rapid pace and by 2026, Ericsson forecasts that 80 percent of North American mobile subscriptions will be 5G, the highest level of any region in the world.
  • Europe will end the year with about 1 percent 5G subscriptions in the region. During the year, some countries delayed auctions of the radio spectrum needed to support 5G deployment.
  • The rate of introducing 5G New Radio (NR) functionality is increasing, with more than 150 5G device models launched commercially. Many devices support 5G Frequency Division Duplex (FDD) and dynamic spectrum sharing (DSS). The first 5G standalone (SA) networks have been launched in Asia and North America, as well as the first devices capable of NR carrier aggregation.
  • The number of service providers offering fixed wireless access (FWA) is on the rise. Almost two-thirds of service providers now have an FWA offering. FWA connections are forecast to grow more than threefold and reach more than 180 million by the end of 2026, accounting for about a quarter of total mobile network data traffic.

https://www.ericsson.com/4adc87/assets/local/mobility-report/documents/2020/november-2020-ericsson-mobility-report.pdf

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.