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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Data Center Summit, technical sessions, plenary speakers and exhibitor announcements will focus on data center network innovations 

SAN DIEGO — As data center traffic grows exponentially from cloud computing and applications including Artificial Intelligence (AI), data science and Internet of Things (IoT), the data center landscape is changing rapidly. 
 
OFC 2019, 3-7 March 2019 in San Diego, California, encompasses the entire ecosystem for data center networking and connectivity, addressing the needs of service and content providers as well as network operators, co-location and cloud providers from around the globe.
 
Optical innovations and optoelectronic integration enable high-speed and low-cost solutions for data center environments. OFC 2019 will feature the latest technological advancements that support the drive for increased efficiency in achieving an optimal user experience.  
 
“For the past several years, OFC has become an increasingly important show for the data center networking community,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “Being the first major show of the year where vendors update their cloud and next-generation platform strategies, OFC helps set the stage for the rest of 2019. We expect to see many exciting vendor announcements at this year’s show.”
 
OFC 2019 will feature world-renowned speakers from top data center operators presenting on the latest networking architectures, leading technical experts reporting on advancements and hundreds of exhibitors demonstrating the latest innovations necessary to meet bandwidth demands. Organizers have aggregated the more than 60 technical and business sessions, workshops and short courses that offer content and training related to data center networks. A comprehensive schedule-at-a-glance is here.
 
“Optical technology remains a critical component of data center networks,” said Gabriella Bosco, Politecnico di Torino, Italy and OFC General Co-Chair. “Recent advances explore ways for these architectures to operate more cost-effectively, efficiently, and rapidly and the OFC program draws out emerging opportunities for operators, and content and service providers.”
 
Business-focused Sessions
This year’s Data Center Summit, Tuesday, 5 March, will feature a keynote from Dave Temkin, Vice President of Networks, Netflix, USA, who will discuss the evolution of content delivery. Another session will debate the adoption and main similarities and differences in open transport architectures for inter-data center, metro and long-haul optical networks, and review the most important related innovations that enable the “open” optical transport evolution.  
 
Three theaters on the show floor will feature technical and business presentations from industry organizations, including COBO, TIP, OpenConfig, Ethernet Alliance, OIF and more.
 
Exhibitors
Of the 700+ exhibiting companies at OFC 2019, more than 100 companies will showcase innovations in all levels of the infrastructure that impacts the network, including: transceivers, routers, switches and intra- and inter- data center equipment.
 
Additionally, several multivendor interoperability demonstrations will be featured on the show floor: OIF will demo Common Electrical I/O(CEI)-112G, FlexE (Flex Ethernet) and 400ZR; and Ethernet Alliance will demo 10 Gigabit Ethernet (10GbE), 25GbE, 50GbE, 100GbE and 400GbE technologies and solutions. Other demonstrations include the Open ROADM MSA SDN and 100G Coherent Transceivers.
 
Technical Sessions
A variety of technical sessions will dig deeper into next-gen technologies such as switching, optical interconnects, coherent systems, direct detection, architecture, machine learning and more. Register here for OFC’s premier technical conference.
 
Training Courses in Data Center Optics
OFC short courses will provide training in data center optics. Topics range from “New Developments in High-speed Optical Networking: OTN beyond 100G, 100G/200G/400G Ethernet, Flex Ethernet” to “Inside and In Between Data Centers” to “High-capacity Data Center Interconnects” and “Photonic Technologies in the Data Center.”
 
ATTENDEE REGISTRATION: 
Attendees may register by visiting ofcconference.org. Admittance to the exhibit hall is free with Exhibits Pass Plus Registration. Learn more. 
 
MEDIA REGISTRATION: 
Media/analyst registration for OFC 2019 can be accessed online. Further information is available on the event website at OFC, including travel details.
 
About OFC
The Optical Fiber Conference and Exhibition (OFC) is the largest global conference and exhibition for optical communications and networking professionals. For more than 40 years, OFC has drawn attendees from all corners of the globe to meet and greet, teach and learn, make connections and move business forward.
 
OFC includes dynamic business programming, an exhibition of more than 700 companies, and high impact peer-reviewed research that, combined, showcase the trends and pulse of the entire optical networking and communications industry. OFC is managed by The Optical Society (OSA) and co-sponsored by OSA, the IEEE Communications Society (IEEE/ComSoc), and the IEEE Photonics Society. OFC 2019 will be held from 3-7 March 2019 at the San Diego Convention Center, California, USA. Follow @OFCConference, learn more OFC Community LinkedIn, and watch highlights OFC YouTube.

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

— 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.