In October 2017, Cignal AI analyzed the occurrence of a slowdown in spending by cloud & colo operators and quantified the magnitude of its impact (see Analysis: 1H17 Cloud and Colo Spending Slowdown).
The report conclusions contradicted the common but inaccurate perception that spending by cloud operators such as Amazon, Google, and Microsoft on optical transport equipment was growing at a rapid rate.
This report has been enhanced with new analysis and updated vendor shipment data from 3Q17, 4Q17, and 1Q18 from equipment and component vendors.
This update includes:
- A summary of cloud & colo spending definitions
- Fresh analysis of changes in quarterly spending trends by cloud & colo operators through 1Q18
- Recent shifts in market share among optical equipment vendors to this customer market
- Quantitative analysis of underlying causes of flat spending, including continued price compression through 2018 and displacement by IPoDWDM via Inphi, Acacia, and Oclaro components.
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