IHS Markit: SD-WAN revenue = $162M in 1Q2018; MEF to Define SD-WAN Service

IHS Markit SD-WAN Revenue Report:

by Cliff Grossner, PhD, Senior Research Director and Advisor at IHS Markit

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4 thoughts on “IHS Markit: SD-WAN revenue = $162M in 1Q2018; MEF to Define SD-WAN Service

  1. IHS Markit: 32 percent year-over-year rise in data center server revenue

    Richer server configurations, supported by new compute and memory-intensive workloads, led to a 32 percent year-over-year increase in data center server revenue, which hit $17.9 billion in the first quarter of 2018. After three consecutive quarters of growth, average memory prices started to stabilize in the first quarter, but compute and data-intensive workloads kept server prices 20 percent higher than the previous year’s first quarter.

    Server shipments grew ahead of seasonality in the first quarter, growing 10 percent over the first quarter of 2017. It was also the first time density-optimized blade servers out-shipped shared-resource blade servers. In fact, nearly every vendor offering density-optimized blades reported soaring demand from cloud service providers (CSPs).

    Demand for open-compute and white-box rack servers also continued to drive a form-factor transition in the data center server market. “As in the past, server vendors offered new products targeted at telcos, with Open Compute Project servers taking center stage,” said Cliff Grossner, Ph.D., senior research director, IHS Markit.

    The overall dynamics affecting the market include a growing need for additional compute power, as more smartphone users connect in developing countries, and as 54.5 billion more devices are introduced in the following vertical markets: automotive and transportation, commercial and industrial electronics, communications, computers, consumer and medical. “The data center server equipment market will continue to grow through 2022, as worldwide demand for compute outstrips growth in central processing unit compute capacity and as efficiency gains from server multi-tenancy begin to slow,” said Vladimir Galabov, senior analyst, IHS Markit.
    “Machine learning, artificial intelligence and other new software technologies will continue to drive the development of new server architectures, bolstering the market for specialized processors capable of high degrees of parallelism,” Galabov said. “However, as the limits of silicon are being reached, we can expect the intensive search for alternative materials to open new markets.”

  2. Huawei’s SD-WAN revenue took a hit with only $1.8 million in revenue in quarter one, down 45% compared to quarter four, according to this new IHS Markit report on SD-WAN market.

  3. According to the market research report published by P&S Market Research, global SD-WAN market is expected to reach $9,691.0 million by 2023, the demand for cost effective WAN management solutions, increasing adoption of cloud technologies, need for simplified network architecture, end-to-end network security and visibility are driving the market globally.

    Based on appliances, the SD-WAN market is categorized into virtual, physical and hybrid appliances. Virtual appliance accounted for largest revenue share in the market in 2017. During the forecast period, it will continue to contribute largest revenue share owing to the fact that it reduces the cost incurred in installation and offers configuration and maintenance of complex stack of software virtually.

    Based on the industry, it is segmented into IT & telecom, banking, financial services and insurance (BFSI), government, healthcare and others, where “others” include defense, retail and manufacturing industry. The IT & telecom accounted for nearly 40% revenue of the SD-WAN market in 2017, owing to the evolving telecommunications and information technology, and demand for greater bandwidth for high performance applications.

    The Asia-Pacific (APAC) SD-WAN market is expected to witness a CAGR of 57.9% during the forecast period. Since the internet speed and internet quality have significantly improved in the region, IT departments are looking for cost effective, secure, performance related solutions to reduce their dependency on multi-protocol label switching (MPLS). Organizations in the IT and telecom industry in the region are focusing on agile, secure, and end-to-end visible WAN management solution, which will support the market growth in future.

    Players in the SD-WAN market are focusing on developing simplified network architecture with enhanced features such as privacy and visibility, which will help in monitoring and measuring network traffic, providing deep visibility to IT department into WAN, and allowing them to quickly pinpoint a security attack.

    Some of the key players operating in the market are Cisco Systems, Inc, Citrix Systems, Inc, Silver Peak Systems Inc, CloudGenix Inc, Ecessa Corporation, Viptela Inc, Riverbed Technology, Inc, Mushroom Networks, Inc, VeloCloud networks Inc, Glue Networks Inc, Elfiq Inc.


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