Supply Chain Implications to Data Center Capex in 2021
In our latest Data Center Capex report published in June 2021, server spending, which accounts for more than 40% of the data center capex, is forecast to grow 8% in 2021. We anticipate growth to come mostly from an increase of server average selling price (ASP), as vendors pass on higher commodity pricing and supply chain costs to customers amid recent global semiconductor shortages. We predict demand on servers to strengthen in 2H 2021, as the major Cloud service providers ease out of a digestion cycle, and as enterprise spending unfreezes for certain sectors, which could further strain the supply chain.
Current State of Industry: Optical Transport DWDM Systems Equipment
“Very competitive” is the best way to characterize the Optical Transport DWDM equipment market. While it is a sizeable market, weighing in at $15 billion, there are about 20 systems manufacturers that actively participate in selling DWDM equipment and aggressively vie for market share. . That said, 90 percent of the market is held by only seven vendors, leaving 10 percent for the remaining vendors, and even among the top seven, the market share delta is large—25 percentage points between the largest and smallest vendor.
Flexible MAC Architecture (FMA) Is a Game-Changer for Cable
FMA opens the door to the true virtualization of cable access networks, supporting any number of use cases and any number of physical layer connections through the same disaggregated network functions. When cable operators faced a significant ramp in upstream bandwidth consumption in the early weeks of the COVID-19 pandemic, some had a difficult time being able to support that growth
5 Reasons Why Network Security Market Is Growing Again
We recently completed our 1Q 2021 Network Security and Data Center Appliance report that spans the Network Security and Application Security & Delivery Markets. A year since the arrival of the Covid-19 pandemic and the ensuing weakness in both markets, the worst of the recent market weakness appears behind. Our data suggests enterprises are fueling growth in both markets due to five reasons
Key Takeaway—1Q 2021 Total Telecom Equipment Market
We just wrapped up the 1Q21 reporting period for all the Telecommunications Infrastructure programs covered at Dell’Oro Group. Preliminary estimates suggest the overall telecom equipment market – Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, SP Router & Switch – started the year on a high note, advancing 15% year-over-year (Y/Y) in the first quarter
US FTTH Demand Shows No Signs of Slowing
DOCSIS 4.0 already represents a fork in the road, with operators having a choice between Extended Spectrum DOCSIS and Full-Duplex DOCSIS. But, if the competition from fiber providers ramps up faster than the availability of DOCSIS 4.0 equipment, there could be another fork in the road for multi-system operators
Open RAN Revenues Up 5X in 1Q21
Open RAN investments surged in the first quarter of 2021. Preliminary estimates suggest total Open RAN revenues – including O-RAN and OpenRAN compatible macro and small cells radios plus baseband hardware and software – increased around five-fold year-over-year. The uptake is uneven. In this blog, we will discuss four Open RAN related key takeaways with the 1Q21 quarter including…
Huawei HAS 2021 RAN Takeaways
Huawei recently held its annual analyst event. Even though we were not able to attend in person, it was an informative event. Below we will discuss some of the RAN-related takeaways touching on 6 GHz and general FDD trends.
Too Much of a Good Thing?
“If you build it, they will come” has been the guiding mantra for network operators for decades now, especially when it comes to their broadband access networks, which have seen accelerated subscriber growth over the last year and consistently contribute margins ranging from 55-70%.
E-band Reaches Further
After attending Huawei’s 2021 virtual analyst summit, I started to wonder whether my forecast for E-band shipments was wrong….Over the past decade, E-band has been steadily growing out of its early-era use as a technology for simple Ethernet bridges on a campus into the wider and more sophisticated world of mobile backhaul. In our market study at Dell’Oro Group, we estimate…
