North America transport hardware spending growth shifted dramatically this quarter from Cloud & Colo operators to Incumbents. APAC Cloud & Colo optical sales grew again.
Third quarter results were better than forecast, especially in EMEA where both optical and packet hardware spending increased. North America spending declined while China spending was flat and Japan spending growth continued unabated.
Juniper defied forecasts of a flat to down second half of 2020 by posting one of its best growth quarters in recent history in Q3.
The diverse requirements of 5G require both the radios and the network supporting the radios to be updated. This report covers advances in 5G packet fronthaul and includes an overview of existing vendor solutions.
Cloud & Colo optical spending in North America cooled while spending in APAC was unexpectedly strong this quarter.
Second quarter results were mixed. Forecasted growth in Q2 from sales pushed out of Q1 did not materialize as anticipated and carriers indicated that annual CapEx will not be increased – suggesting a flat to down second half of the year.
North American Incumbent optical spending was up almost 50% YoY while Wholesale, Cable/MSO, and Cloud spending all declined this quarter.
Vendors generally claimed a 5-10% reduction in sales due to COVID-19 operational issues this quarter. While demand increased, the inability to get parts, manufacture equipment, and deliver to end customers reduced sales in all areas.
Cloud & Colo optical spending growth cooled in the 4th quarter but still led growth for the year with Ciena as market share leader. North American Incumbent and Cable/MSO optical spending came back strong in the 4th quarter.
This report finalizes our full optical equipment market share analysis and includes updated forecasts for the industry through 2024.
Vendor summary reports focus on the most recent quarterly financial results and items of interest for select vendors. This report covers Juniper’s 4Q19 results.
Cisco held a major launch event to communicate that the company is reorienting its focus to changing network architectures and customers. The deeper message was one of cultural changes at Cisco.
Cloud & Colo led growth in North America, up 45% this quarter. Ciena increased its market share to over 50% in 3Q19.
Inphi announced it sampled its new Canopus coherent DSP, the industry’s first merchant 7nm coherent DSP designed to support 400ZR and 400ZR+ applications. Andrew Schmitt commented in the press release, joined by others from Arista and Juniper.
Incumbent spending grew in every region, Cloud & Colo spending growth slowed, and Cable & MSO sales declined.
The next major stop on the road to faster speeds in the datacenter is 400Gbps Ethernet, and activity at OFC2019 centered on making this speed a feasible commercial option.
The arrival of standardized, pluggable 400ZR and derivative technologies – fourth generation coherent – is poised to be the most disruptive event in optical hardware since the advent of coherent 100G in 2010.