COVID-19 Hits Supply Chain; Demand Varies Based on Vertical and Geography

PORTOLA VALLEY, Calif – May 27, 2020 – 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 declined nearly 10% Y/Y on weak campus and data center results in 1Q20, declining to approximately $7B. The report also indicated significant regional differences amongst vendors, as well as aggressive ASP fluctuations in the market.
“The Ethernet Switch market contracted in the expected regions and verticals in 1Q20,” said Alan Weckel, Founder and Technology Analyst at 650 Group. “Supply chain constraints in factories and components remain entering the last month of 2Q20. Certain component shortages will remain well into 2021 as vendors prioritize customers and products throughout the year.  Our vertical analysis of the campus and data center Ethernet switching markets indicates a different recovery rate and use of technology as the market begins to rebound in 2H20.  Digital transformation and the use of cloud platforms will be critical to companies going forward, especially as the digital divide increases across regions and customers.”
The 650 Group Quarterly Ethernet Switch report also indicates what impact the trade war is having on campus suppliers and the surge in 25 Gbps port shipments from H3C and Huawei.  
The report highlights how campus Ethernet switching outperformed data center switching with new products from Arista, Cisco, Extreme Networks, and Juniper all ramping during the quarter.
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, and 800 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, 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.


PR Contact
Greg Cross
650 Group
greg@650group.com

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.

— 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.