PORTOLA VALLEY, Calif.  August 8, 2019 —  According to a newly released report issued by founding analysts of 650 Group, US Hyperscaler Cloud market revenue grew 25% Y/Y in 2Q19 while CAPEX used for DC Equipment returned to growth with mid-teen Y/Y results.
 
650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social.
 
2Q19 Highlights:

• Data Center Capital Equipment Expenditures grew over 15% Y/Y
• Tier 2 Cloud providers shifting some spend away from their own build outs and towards US Hyperscalers
  
• Facebook lowered 2019 CAPEX projection for the second straight quarter
• Microsoft Azure continues to gain on Amazon AWS in the IaaS market
• White Box Switching, led by Accton, shows strongest Y/Y growth since 2017
• DRAM pricing continued to decline significantly on a sequential basis; capacity continued to surge
• AMD continues to grow market share in the Cloud

 
The Cloud reports 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.
 
“2Q'19 Cloud results rebounded strongly albeit with very mixed results,” said Alan Weckel, founding analyst for 650 Group. “Strong networking growth in 2Q19 remained 100 Gbps dominated with minimal 400 Gbps shipments. Strong commodity price declines remained in parts of the supply chain. Our forecast projections for the remainder of 2019 and early 2020 remain unchanged as we analyzed results and continue to expect uneven CAPEX growth amongst the US hyperscalers for the remainder of the year.”
 
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.


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Greg Cross
650 Group
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Enterprise and Data Center Switching markets shatter old records

Portola Valley, California – Feb. 26, 2019 – 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 10% Y/Y on strong campus and data center growth in 2018 to slightly over $31 Billion.  The report also indicated China revenue reached an all-time high in the year on robust campus and data center growth.

“The Data Center market continued to surge despite some concerns of Cloud CAPEX growth rates slowing.  There is a disconnect in Cloud CAPEX and networking CAPEX; we note that networking CAPEX continues to be robust, despite overall CAPEX growth rate contractions amongst the largest Cloud providers,” said Alan Weckel, Founder and Technology Analyst at 650 Group.  “Overall CAPEX growth rate slowdown is being driven by Compute and Storage.  400G seems to have pushed out about one full quarter as well from both a system and optics view with the market anticipated second generation 400 Gbps product announcements by the end of the calendar year.”

The Quarterly Ethernet Switch report also indicates the Cisco and HPE Aruba were responsible for over half the revenue growth in the Enterprise market while Arista and White Box were responsible for over half the revenue growth in the Data Center Market. 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 2018 in the United States while H3C, Huawei, and Ruijie are the market leaders in China.

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.
 
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Portola Valley, California – Sept. 17, 2018 – A newly released market report from the 650 Group indicates that 100 Gbps revenue has exceed 10 Gbps revenue for the first time, as Data Center Ethernet Switching hit an all-time record high in 2Q18.  
 
“The Data Center Ethernet Switch market hit a significant milestone in the market and 10 Gbps is no longer the dominant speed in terms of revenue,” said Alan Weckel, Founder and Technology Analyst at 650 Group.  “This is quite an accomplishment, something 40 Gbps could never achieve and is primarily driven by strong demand of Cloud providers throughout the world. DC Equipment CAPEX is growing at such a rapid pace that future records breaking when 400 Gbps starts shipping are likely.” 
 
The report also indicates strong 25 Gbps native and 100 Gbps port shipments from Arista, Cisco, Dell, H3C, Huawei, and Juniper.
 
Additionally, 650 Group published its Merchant Silicon report that indicates record 25 Gbps SERDES shipments with the technology representing over half the lanes in Data Center switching for the first time.  The start of shipments based on 50 Gbps SERDES solutions also occurred during the quarter.  Quarterly reports on this subject include market share for Broadcom, the market leader, as well as emerging vendors, including Barefoot, Innovium, Marvell, 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.  
 
About the Data Center 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 a

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.

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.