Enterprise and Consumer’s Use of Cloud Resources Changing to the New Normal because of COVID-19
PORTOLA VALLEY, Calif. Aug. 5, 2020 — According to a newly released report issued by founding analysts of 650 Group, US Hyperscaler Cloud market revenue grew 11% Y/Y in 2Q’20 while the supply chain for Data Center Equipment into Hyperscalers performed unevenly due to shifting lead times and trade war impacts. 650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social. 2Q’20 Highlights: * o Search and Social revenue growth was uneven based on the change of viewing habits of consumers from COVID-19 as advertisers and consumers shifted behavior significantly during the quarter * o IaaS revenue growth was robust led by most surge capacity placed in IaaS companies' infrastructure instead of their own build-outs * o Four of the five largest hyperscalers are under US government scrutiny for monopolistic behavior * o Market capitalization is averaging over $1 Trillion for this group of companies * o Supply constraints remain in 3Q’20 related to COVID-19 and trade war events * o Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years * o US hyperscaler revenue is nearly 10X the size compared to Chinese hyperscaler revenue in 1H’20 * o US hyperscaler influence on the supply chain is increasing The 650 Group Cloud Reports include CAPEX studies for the Colocation, IaaS, SaaS, and Search and Social Media markets, including a 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. “2Q20 IaaS cloud hit a record, far exceeding 4Q’19’s previous revenue record and over twice the revenue from just three years ago,” said Alan Weckel, founding analyst for 650 Group. “US trade war activities, mainly against Huawei, caused significant lead time increases in many critical components for cloud data center build-outs during the quarter as the 5G battle against China is having ripple effects into the cloud supply chain.” About 650 Group 650 Group (www.650group.com) 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 with over 12 research programs focused on Cloud trends. Cloud Providers Evaluating Multi-Vendor Solutions for 400 Gbps Connectivity, According to 650 Group6/24/2020
ASIC Diversity at the Leaf/Spine and DCI Core Key to 400 Gbps at Apple, AWS, Facebook, Google and Microsoft Azure PORTOLA VALLEY, Calif.– June 22, 2020 – A newly released report by 650 Group, a leading Market Intelligence Research firm for communications, data center, and cloud markets, indicates that the ASIC segment of the data center switching market is rapidly migrating to 12.8 Tbps and 56 Gbps SERDES based products. The report also showed significant evaluations occurring at each of the hyperscalers at the ASIC and system level for both Top-of-Rack (Leaf / Spine) L2 ASICs and L3+ ASICs for the Core (DCI, Metro Spine). “1Q20 recorded record shipments in 400 Gbps and strong 100 Gbps demand in the hysperscalers,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “ASIC diversity is critical to hyperscalers goal of a diversified supply chain. Historically Cloud providers would pick the same ASIC and have multiply vendors manufacture a switch platform. With current-generation products, hyperscalers are pushing towards additional ASIC diversity.”' The 650 Group Quarterly Merchant Silicon report also indicates what impact the industry standards bodies efforts on 224 Gbps SERDES and co-packaging on the Ethernet Switch and Router markets. The report highlights the migration away from 10 Gbps ports to 25 Gbps ports in the enterprise and the Cloud migration towards 100 Gbps and 400 Gbps. About the Merchant Silicon Quarterly Report The Merchant Silicon Quarterly Report offers a market assessment of vendor performance and market share in the ASICs that sell into the Ethernet Switch market. The report covers ASICs by SERDES speed and tracks companies like Broadcom, Innovium, Intel (Barefoot), Nvidia(Mellanox) as well as other ASICs sold into the data center. For more information about the report, contact the sales department at 650 Group at +1 650 600 7104 or val@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. Learn more at http://www.650group.com Significant Shift in Buying Patterns of the Tier Two Cloud Causes Massive Fluctuations in the Supply Chain
PORTOLA VALLEY, Calif. Nov. 7, 2019 — According to a newly released report issued by founding analysts of 650 Group, US Hyperscaler Cloud market revenue grew 26% Y/Y in 3Q19 while CAPEX used for DC Equipment grew with mid-teen Y/Y results. 650 Group’s Cloud Report covers Colocation, IaaS, SaaS, and Search & Social. “3Q19 Hyperscaler results were robust with strong growth in revenue and data center build outs,” said Alan Weckel, founding analyst for 650 Group. “Hyperscalers buy a different class of equipment from a different set of suppliers from the rest of the market and 3Q19 results are showing those differences in vendor market shares. The significant slowdown in Tier 2 Cloud spending, with many Tier 2 Clouds relying more on Hyperscalers has changed the supply chain and how it is working beneath the Hyperscalers.” Report Highlights:
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. 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, 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:
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. PR Contact Greg Cross 650 Group greg@650group.com — 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:
“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. |
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