— Cloud market revenue expected to exceed $700B in 2022 as 650 Group First To Provide Comprehensive Analysis of Cloud Infrastructure + Services

PORTOLA VALLEY, Calif.  August 20, 2018 —  According to a newly released report issued by founding analysts of 650 Group, Cloud market revenue grew 36% Y/Y in 1Q18 to make for an $84B market. IaaS experienced the strong growth with 53% Y/Y growth. 2Q18 results are indicating significant sequential growth. 

Found in its first Cloud Report, 650 Group covers Colocation, IaaS, SaaS, and Search & Social.

1Q18 Highlights:

• Capital Equipment Expenditures (CAPEX) grew 62% Y/Y to $30 B, including total company CAPEX, Cloud CAPEX, and DC Equipment CAPEX separately. Spending was led by Amazon, Apple, Facebook, Google and Microsoft
• Search and Social revenue grew 31% Y/Y while CAPEX grew 128%
• SaaS revenue grew 41% Y/Y while CAPEX grew 16% Y/Y . The top four SaaS vendors are Microsoft, Salesforce, Oracle, and SAP.

The 650 Group Cloud Report includes CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets including unique look at spending specifically for data center equipment. Going beyond just Cloud revenue provides a unique look into where and how the largest Cloud providers deploy equipment.  In the report, you can see the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building out their own infrastructure.

“The biggest Tech players define the cloud market, and considering its already robust size ($52B by just four companies), coupled with rapidly increasing adoption, it will continue to grow at a blistering pace up to 2022,” said Alan Weckel, founding analyst for 650 Group.  “The emphasis is on helping consumers, governments and businesses access resources, communications and entertainment, in addition to critical services, ranging from finance/insurance and retail, to manufacturing and healthcare. With CAPEX reaching 62% growth stemming from the largest providers, the cloud market represents a strong growth opportunity for network, storage, component, and optical vendors supplying data center compute and connectivity.”

About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading edge market trends and research and prides itself on first to market research.
 
 
 

Portola Valley, California – July 2, 2018 – A newly released report by 650 Group reveals strong forecasted growth in the Enterprise plus Outdoor Wireless LAN market.  Emerging 802.11ax technology is expected to experience rapid adoption, with a first wave of shipments beginning in 2018, followed by a second wave of products in 2019 and beyond.  Overall, 650 Group expects 802.11ax to represent the majority of shipments by 2022.

“We expect overall growth in the Enterprise-class plus Outdoor WLAN market will be driven by two main trends over the five year horizon,” said Chris DePuy, Founder and Technology Analyst 650 Group.  “First, traditional use of WLAN devices such as computers and mobile devices will continue to drive additional WLAN infrastructure investment at companies mainly in emerging markets for the next few years.  We have already reached a point of WLAN deployment saturation in at companies in developed markets, where such enterprises mainly upgrade existing WLAN installations when improved products hit the market.  Second, beginning in the next 2-3 years, we expect the adoption of IoT devices, including those involving video surveillance, will become significant enough to drive additional spending on WLAN infrastructure to sustain growth in the later years of the forecast.”

By 2022, Enterprise-class plus Outdoor WLAN products are expected to grow to over 35% greater than 2017 levels.  Adding in revenue from cloud-managed WLAN services, which are very popular with branch office deployments and at small businesses, to product-only revenues, 650 Group expects the compounded annual growth rate to increase by over one percentage point.

After a significant slowdown in Enterprise-class plus Outdoor WLAN revenues in China over the past two years, we still expect growth in this region be more powerful than in any of the other six geographic regions that are tracked in the WLAN Infrastructure quarterly and forecast studies conducted by 650 Group. 

Vendors included in the quarterly market share report are Aerohive, Arris/Ruckus Wireless, Alcatel-Lucent Enterprise, Cisco, DELL, Extreme Networks, H3C, HPE Aruba, Huawei, Riverbed/Xirrus, Sundray, and Ubiquiti Networks. 

About the Unified Access and Cloud-Services Market Forecast and Quarterly Reports
The Unified Access and Cloud-Services Quarterly Report offers a market assessment of vendor performance and market share in the combined market of Campus Ethernet Switches and Enterprise-class WLAN infrastructure devices, as for cloud-managed Wi-Fi and switch services and related product revenues.  For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com.
 
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.  650 Group focuses on leading edge market trends and research and prides itself on first to market research.
 

Portola Valley, California – May 23, 2018 – A newly released report by 650 Group, a leading Market Intelligence Research firm for communications, data center and cloud markets, indicates that the Ethernet Switch Market grew over 10% Y/Y on strong campus and data center growth in 1Q18 to slightly below $7 Billion.  The report also indicated that 100 Gbps revenues account for over a quarter of all Ethernet Switch Revenue in the data center.

“100 Gbps set a record in revenue and port shipments during 1Q18 as the market was driven by both merchant silicon and custom ASIC solutions.  100 Gbps adoption is also spreading beyond the data center with many vendor announcements in the campus market,” said Alan Weckel, Founder and Technology Analyst at 650 Group.  “The Data Center market for 100 Gbps will remain robust for several years despite Cloud Providers beginning to implement 200 Gbps and/or 400 Gbps based on next generation silicon in the next eighteen months.”

The Quarterly Ethernet Switch report related to this segment indicates that Arista, Cisco, HPE, and Juniper are the market leaders in the Ethernet Switch Market in 1Q18 in the United States while H3C, Huawei, and Ruijie are the market leaders in China.

Additionally, 650 Group also published its Merchant Silicon report that indicates record 25 Gbps SERDES shipments with an expected strong ramp in 2H18 of 50 Gbps SERDES-based solutions.

About the Ethernet Switch Quarterly Report
The Ethernet Switch Quarterly Report offers a market assessment of vendor performance and market share in the Ethernet Switch market.  The report covers Modular, Fixed Managed, Smart Switching, White Box, Disaggregation, and other segmentation as well as the following port speeds: 100 Mbps, 1 Gbps, 2.5 Gbps, 5.0 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, 100 Gbps, 200 Gbps, and 400 Gbps.  For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com.
 
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.

Portola Valley, California – January 16, 2017 – A newly released market leading report by 650 Group indicates that 200 Gbps, 400 Gbps, and 800 Gbps will all ship in the next five years resulting in robust growth for the Ethernet Switch Market. 
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“The first wave of 200 Gbps and 400 Gbps will hit the market in early 2018 as the Ethernet Switch market expands the number of port speeds just three years since the last major set of technology advances. Both 200 Gbps and 400 Gbps will emerge off of 50 Gbps SERDES technology announced in 2017,” said Alan Weckel, Founder and Technology Analyst at 650 Group.  “The rapid pace of innovation is led not only by impressive technology improvements, but by Software Defined Networks (SDN) which is enabling the Cloud to better utilize the compute and networking resources at their disposal.”

650 Group authored several forecast reports on the subject of 200 Gbps and 400 Gbps as well as 25 and 50 Gbps SERDES speeds.

Merchant Silicon looks at the transition in the market amongst silicon vendors and how the market will transition.  Quarterly reports on this subject include market share for Broadcom, the market leader, as well as emerging vendors like Barefoot, Cavium, Innovium, Mellanox, and Nephos. 

The Ethernet Switching report family, which includes several unique reports ranging from the overall market to Data Center, SMB, and Enterprise/Campus looks closely at the technology and speed transitions amongst the different markets within switching and for data center switching looks closely at vendor market positioning in the installed base and amongst unique vertical splits such as the Cloud, Telco SP, and enterprise space.  This report indicates that Arista, Cisco, Dell, H3C, HPE, Huawei, and Juniper all have significantly different market share in each vertical within data center switching.

About the Ethernet Switch Quarterly Report
The Data Center Ethernet Switch Quarterly Report offers a market assessment of vendor performance and market share in the Ethernet Switch market.  The report covers Modular, Fixed Managed, Smart Switching, White Box, and other segmentation as well as the following port speeds: 100 Mbps, 1 Gbps, 2.5 Gbps, 5.0 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, and 100 Gbps.  For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com.

About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.

Arista, Cisco, and Juniper Jockey for Position While New Vendors Emerge for Data Center Edge and Data Center Interconnect Use Cases
 
Portola Valley, California – October 6, 2017 – An upcoming report by 650 Group, the leader in Switching, Routing and Data Center Interconnect market research and competitive positioning, indicates an intense battle for market positioning as the traditional router and switch product boundaries collapse at Cloud customers.
“Cloud architectures are changing significantly with 100 Gbps as demand for high density and universal platforms becomes common.  There is little incumbency advantage,” said Alan Weckel, Founder and Technology Analyst at 650 Group.  “Cloud customers are looking for advanced routing on high density Ethernet platforms, and each vendor, based on its heritage, is approaching the market differently.  Given the size of the Cloud, and the anemic growth occurring in the traditional service provider and enterprise spaces, we only see this battle amongst vendors becoming more intense as new vendors enter this space over the next six months.”
The reports also indicates that Nokia will enter the Cloud space with the its FP4-based ASICs as well as H3C and Huawei in China.  The Merchant Silicon report looks at ASIC positioning inside Data Center Switching while the Data Center Interconnect report looks at the various use cases and topologies in that emerging market.
 
About the Quarterly Report
650 Group authors several reports in the Ethernet Switch, Router, Data Center Interconnect, and Merchant Silicon space.  The reports offers a market assessment of vendor performance and market share in in each segment.  The reports covers Modular, Fixed Managed, Smart Switching, White Box, and other segmentation as well as the following port speeds: 100 Mbps, 1 Gbps, 2.5 Gbps, 5.0 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, and 100 Gbps.  For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@650group.com or www.650group.com.
 
About 650 Group
650 Group is a leading Market Intelligence Research firm for communications, data center and cloud markets.  ​Our team has decades of research experience, has worked in the technology industry, and is actively involved in standards bodies.