Semiconductor and Supply Chain Shortages Limit Data Center Buildouts

Incline Village, NV.  August 23, 2021 —  According to a newly released report issued by the 650 Group, US hyperscaler cloud market revenue grew 43% Y/Y in 2Q21 while the supply chain for Data Center Equipment into hyperscalers performed unevenly due to continued semiconductor and component shortages.  

650 Group’s Cloud Report covers Colocation, Infrastructure as a Service (IaaS), SaaS, and Search & Social for companies such as Amazon, Apple, Facebook, Google and Microsoft.

“2Q21 IaaS revenue hit a record, far exceeding 4Q20’s previous revenue record,” said Alan Weckel, founding analyst for 650 Group. “IaaS continues to increase in influence throughout the entire component and semiconductor supply chain.  The number of applications that enterprises and consumers use each day continues to increase, and the majority of those applications exist in hyperscalers IaaS data centers.  Many critical components for cloud data center build-outs during the quarter remain constrained.”

2Q’21 Highlights:
o    Search and Social revenue surges.  Google and Facebook remain dominant, but the rest of the market shows signs of gaining ground
o    IaaS revenue growth was robust as many enterprises rely on the cloud to support their new-normal hybrid workforce and environments
o    US Hyperscaler made approximately $1M in cloud revenue every minute during 2Q21
o    Supply Constraints remain in 2Q21 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 of Chinese Hyperscaler Revenue in 1H21
o    US Hyperscaler influence on the supply chain is increasing

The 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.

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.

Enterprise WLAN Market Rebounded with 25% growth in 1Q’21, Driven by 197% Y/Y Wi-Fi 6 Revenue Growth

INCLINE VILLAGE, Nevada – June 17, 2021 – A newly released report by 650 Group, a leading Market Intelligence Research firm for communications, data center, and cloud markets, indicates that the Enterprise Wireless LAN (WLAN) Infrastructure Market grew 25% Y/Y in 1Q21 to approximately $1.8 B.  The report also highlights that Cloud-Managed WLAN Services experienced 38% Y/Y revenue growth, a notable acceleration versus the previous five quarters. 

"Cloud-Managed WLAN Services are growing faster than they have the past several quarters as a larger group of vendors embrace this exciting technology,” said Chris DePuy, Founder and Technology Analyst at 650 Group.  “Our quarterly Cloud-Managed Services publication shows that some leading vendors like Commscope, Extreme Networks, HPE Aruba, and Juniper are growing more rapidly than the overall market.  As these companies improve and promote their cloud-managed services to their customers, it has expanded the size of the market."

The Cloud-Managed Network Services publication indicates that the top five vendors are Cisco Systems, Extreme Networks, HPE Aruba, Commscope, and Juniper.  In the Enterprise WLAN report, Cisco Systems, HPE Aruba, Ubiquiti, Commscope, and Extreme Networks rounded out the top five players by revenue.  Additionally, the report shows that Wi-Fi 6 market revenues nearly doubled Y/Y and forecasts that the highest growth Access Point types next year will be Wi-Fi 6 and Wi-Fi 6E systems. 

About the Enterprise WLAN and Cloud-Managed Network Services Quarterly Reports
The Enterprise Wireless LAN Quarterly Report offers a market assessment of vendor performance and market share, and forecasts.  The report covers Enterprise Indoor Access Points, Enterprise Outdoor Access Points, Controllers for the following speeds:  802.11n, 802.11ac Wave 1, 802.11ac Wave 2, Wi-Fi 6, Wi-Fi 6E, Wi-Fi 7.  The Cloud-Managed Network Services Report entails Cloud-Managed Services Cloud-Managed Network Products for Enterprise WLAN and Campus Ethernet Switching. 650 Group publishes additional segment-specific reports in WLAN, such as customer size, vertical markets, and distribution channels. 
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.
 
 

Data Center Switching Records Strongest Growth; Campus Switching Records Third Straight Quarter of Y/Y Growth
 
INCLINE VILLAGE, Nev. – June 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 10% for 1Q’21 to approximately $7.5 B.  The report also revealed significant regional differences, with China showing robust growth in 2020 and with Europe, Japan, and the United States all contracting.

"The Ethernet Switch market continued to perform robustly, despite supply constraints and an uneven recovery from COVID-19," said Alan Weckel, Founder and Technology Analyst at 650 Group. "400 Gbps set another record as T2 Cloud performance was inconsistent, but hyperscaler and telco cloud growth remained robust.   In Campus switching, mid-market began to grow again, and verticals hit by COVID-19 such as retail began their recovery.  2021 will see significant market share shifts as vendors have different exposure to verticals and regional theatres.”
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 data center switch branded 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 1Q’21.  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.
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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

800 Gbps to Start the Transition to Co-packaging and Onboard Optics as Ethernet Switch ASICs race to 51.2 Tbps and 102.4 Tbps

INCLINE VILLAGE, Nevada, April 26, 2021 - According to a new report published by 650 Group, titled 800 Gbps Forecast 2020-2025, the worldwide market for 800 Gbps Switching and Routing, including the DCI use case, will exceed $10 Billion in revenue by 2025.  800 Gbps allows Ethernet Switches and Routers to take on additional DCI use cases with pluggable markets increasing the revenue opportunity compared to previous speeds.

ASIC vendors, OEMs, ODMs, and pluggable module companies need to find their niche in a market that the hyperscalers will increasingly dominate.  The 2025 Cloud market will see a fight in demand for speed and power and at the same time, a battle for the edge between hyperscalers, traditional telco providers, colocations operators, and enterprises.  While 400 Gbps will start some of these trends, 800 Gbps will have a higher revenue opportunity over the long term.

"800 Gbps will be a critical technology and drive a robust ecosystem of suppliers in the Ethernet Switch and Routing markets," said Alan Weckel, Founding Technology Analyst at 650 Group. "ASICs continue to push the technology envelope to meet the needs for bandwidth from the hyperscalers and support the applications we use each day.  800 Gbps saves a tremendous amount of power per bit of traffic, and the newer technologies that go into this speed have widespread application for the remainder of the decade."

To purchase the report, we offer 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:  www.650group.com/800-gbps-report.html

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

The report also discusses the impact of ZR/ZR+, 112 Gbps/224 Gbps SERDES, and different optical speeds and the impacts those technologies will have on the migration to higher speeds and their potential applications for co-packaging, onboard optics, and photonics.

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.