Despite Decommits in the Supply Chain, US Hyperscalers Maintain 2022 CAPEX Guidance
 
Incline Village, NV.  May 10, 2022 —  According to a newly released report issued by 650 Group, US Hyperscaler Cloud market revenue grew 23% Y/Y in 1Q’22 while the supply chain for data center equipment into hyperscalers performed unevenly due to continued semiconductor and component shortages.
 
650 Group’s US Hyperscaler Cloud Report covers IaaS, SaaS, and Search & Social and publishes shortly after Amazon, Apple, Google, Meta (Facebook), and Microsoft report earnings.  It is focused on the Hyperscalers, which account for approximately 70% of revenue and spend in the Cloud.
 
1Q’22 Highlights:

• Despite decommits in the supply chain, US Hyperscalers kept their 2022 CAPEX guidance
• US Hyperscalers made $1M in Cloud revenue every minute during 1Q’22
• Apple continues to lag the rest of the Hyperscalers in data center investment
• Network and compute utilization and expertise cause each hyperscaler to spend differently to get the same level of output from their equipment
• 400 Gbps and 800 Gbps ramped robustly during 1Q’22
• Hyperscalers are poised to ramp next-generation server and networking architectures over the next two years focused on AI/ML, and a new class of metaverse focused hardware

 
“US Hyperscalers continue to invest robustly in their data center buildouts despite uneven worldwide growth and supply constraints,” said Alan Weckel, founding analyst for 650 Group.  “Supply constraints worsened for several components as semiconductor capacity continues to lag Hyperscaler demand. Despite the difficulties in the supply chain, Hyperscalers continue to push the envelope in process geometry and next-generation technologies.  As a result, CAPEX and investment are set to soar over the next several years as the Cloud moves towards the metaverse and AI/ML in IaaS start to take off.”
 
The US Hyperscaler Cloud reports include CAPEX studies for the IaaS, SaaS, and Search and Social Media markets, including a unique look at spending specifically for data center equipment.  In addition, the report looks at projected revenue and CAPEX through 2026.  Finally, the report shows the trend towards more CAPEX spending occurring in IaaS as many SaaS providers choose IaaS instead of building their own infrastructure. To learn more, visit http://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 with over 12 research programs focused on Cloud trends. For more information, visit: http://650Group.com

Data Center Switching Expands Into Strong 400 Gbps Upgrade Cycle; Campus Switching Records Record Quarter

Incline Village, Nevada – December 2, 2021 – 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 nearly 5% Y/Y in 3Q21 to nearly $9.0 B.  The report also revealed significant regional differences in vendor performance with many records set.

"The Ethernet Switch market hit record levels in 3Q21 as vendors were able to overcome supply constraints and pass on costs to customers," said Alan Weckel, Founder and Technology Analyst at 650 Group. "Supply chain control remains key to 2022 results as Hyperscalers ramp 400 Gbps and the market braces for record CAPEX growth from the Cloud.  In campus switching, price increases implemented in early 2021 helped the market reach new record highs.  For 2022, we expect continued strength across almost all segments of Ethernet Switching.”

The Quarterly Ethernet Switch report also indicates that the top four campus switch vendors after Cisco in North America were HPE Aruba, Extreme, Ubiquiti, and Juniper.  The top three branded data center switch vendors after Cisco in North America were Arista, Juniper, and Dell.  The report highlights how business size, vertical exposure, and hyperscaler adoption drove vendor performance in 2Q21.  Future reports will include Network-as-a-Service and 1.6 Tbps.

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, 400 Gbps, 800 Gbps, and 1.6 Tbps.  650 Group publishes additional segment-specific reports in Campus / Enterprise Switching and Data Center Switching.  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, Juniper, White Box, and SONiC Market Shares Differ Materially Between the Enterprise Market and the Cloud Market

INCLINE VILLAGE, NEV. – Aug. 26, 2021 – An upcoming report by 650 Group, a leading Market Intelligence Research firm for communications, data center, and cloud markets, provides unique insight into the differences of Ethernet Switches deployed into Enterprises networks compared to Cloud data centers.  

15 years ago, the Ethernet Switch market began a fundamental change when vendors began engineering purpose-built switches expressly for data center market and others for the campus network market instead of using just one platform for both. For Cisco, it was the creation of its branded Nexus product family, Juniper the QFX, Arista and a class of “white box” switch companies entered the market soon after, leveraging Broadcom merchant silicon sourcing strategies. 650 Group’s new report reflects the fact that the data center Ethernet Switch market today has further split into two unique areas, cloud and enterprise.  This new report reflects the idea that the needs of the enterprises are different than that of the cloud hyperscalers.

"Today, there is specific demand for different kinds of Data Center Ethernet Switches – one set for enterprises and another for cloud. As the two product sets diverged, vendors have specialized on one or the other.  For instance, the Enterprise market is focused on 25 Gbps and 100 Gbps speeds, while the Cloud market has moved to 400 Gbps and beyond," said Alan Weckel, Founder and Technology Analyst at 650 Group. "Enterprise vendors now use specialized switch semiconductors that are unique to the Enterprise segment.  The vendors also offer Enterprise-specific software features that support multi-cloud strategies spanning the premise, colocation, and cloud facilities.  

Switches built for the enterprises now have unique specifications compared to those built for the Cloud, and the market share that vendors have in each market differs between Enterprise and Cloud. For instance, Cisco's market share in the Enterprise is over 30 points higher than its Cloud market share.   We are excited to expand our research to create a new report focused on this exciting, multi-billion part of the Ethernet Switch market."

The Quarterly Ethernet Switch – Data Center – Enterprise report includes segmentation on a regional and worldwide basis and provides market data for the China and non-China markets.  The report contains the difference in market shares in China and its three leading vendors: H3C, Huawei, and Ruijie.  The report also focuses on the non-China market and its four prominent vendors: Arista, Cisco, Dell, and Juniper. White box remains minimal in the enterprise segment.  Future reports will include subscription, Network-as-a-Service, and hybrid-cloud segmentation.

About the Ethernet Switch – Data Center – Enterprise Quarterly Report
The Ethernet Switch – Data Center – Enterprise Quarterly Report offers a market assessment of vendor performance and market share in the enterprise portion of the data center switching market.  The report covers Modular, Fixed Managed, White Box, Disaggregation, and other segmentation and the following port speeds: 1 Gbps, 10 Gbps, 25 Gbps, 40 Gbps, 50 Gbps, 100 Gbps, 200 Gbps, 400 Gbps, 800 Gbps, and 1.6 Tbps.  650 Group publishes additional segment-specific reports in Data Center Switching.  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.
###

Hardware and Software Markets to Evolve Differently as SONiC Support Increases in the Ecosystem

INCLINE VILLAGE, Nev., May 10, 2021 - According to a new report published by 650 Group, titled SONiC Market Forecast 2020-2025, the worldwide market for SONiC in Data Center Switching will exceed $4 Billion in revenue by 2025.  SONiC‘s role outside of hyperscalers will increase during the forecast period.

The SONiC market is very different for hardware and software, and vendors are looking to create a broader support ecosystem. The research report looks at the various end-markets and consumption models for SONiC software and hardware, as well as the differences between SONiC capable and networks actually running SONiC.

"Open Networking has always been a topic of interest in data center networking. The trend started almost 20 years ago with OpenFlow and the interest in the broader ecosystem of emulating the rapid innovation in the cloud," said Alan Weckel, Technology Analyst at 650 Group. "Most end-users expressed interest in being agile like a Hyperscaler, and SONiC is increasing in popularity to fulfill this role. SONiC finds its roots in the very early days of Open Networking."

To purchase the report, we offer this report for $1,995 to a single user at a single company and $2,995 to a group of five users at a single company and have additional options for redistribution and external use of the data.  To purchase the report, visit: https://www.650group.com/sonic-report.html  

Vendors mentioned in the report include Arista Networks, Broadcom, Cisco Systems, Dell, Innovium, Intel, Juniper Networks, Marvell, Nokia, Nvidia, and many white box manufacturers.

The report also discusses the impact of SONiC in China, in Tier-2 Cloud providers, and enterprises.

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 with numerous research programs focused on Cloud and technology trends. Visit: http://www.650group.com

Profits Remain Elusive as Cloud Providers Target Revenue Growth over Profitability

INCLINE VILLAGE, NV, Feb. 22, 2021 - According to a new report published by 650 Group, titled: IaaS Hyperscaler SWOT Report 2020-2025, IaaS revenue grew to over $100 B in 2020 and $50 B in Capital Expenditures for data center equipment (servers, storage, networking) and other compute and IT equipment.  Amazon AWS, Microsoft Azure, and Google GCP made up over 60% of the revenue with Alibaba being the largest non-US provider.

AWS brought in $86,000 per minute in revenue and made $26,000 per minute in profit dollars.  While GCP, in third place, brought in $3,300 per minute in revenue while losing $1,400 per minute in 2020.  Additionally, 2020 saw Alibaba record its first profitable quarter.

"While revenue continues to surge for IaaS as many businesses rely on it as a foundational building block for their data, profit dollars remain challenging as companies look to grow and expand instead of relying solely of profit to make investment decisions," said Alan Weckel, Founding Technology Analyst at 650 Group.

Continued Weckel: "2021 is shaping up as an important battle of US IaaS hyperscalers as they invest to their strengths to continuing expanding.  The battle for Artificial Intelligence (AI/ML) with IaaS providers is presently in its infancy with many suppliers vying for position for the underlying technology."

Purchase the Report:
650 Group offers this report for $995 to a single user at a single company and $1,995 to a group of five users at a single company and have additional options for redistribution and external use of the data.  To purchase:  https://650group.com/IaaS-Hyperscaler-SWOT-report.html

Companies covered in the report include hyperscale cloud providers Amazon Web Services (AWS), Microsoft Azure, Google GCP in addition to IaaS comparisons with IBM, Oracle, and Alibaba. The report also discusses the strengths, weaknesses, opportunities, and threats of the US Top-3 IaaS hyperscalers.

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 with numerous research programs focused on Cloud and technology trends. For more information, visit: http://www.650group.com
 
For more information, contact:
650 Group Media Relations:
Greg Cross
greg@650group.com