What is optical communication in the global cloud computing infrastructure market?
2017-09-06
Market research firm IDC's global cloud IT infrastructure quarterly tracker report shows that in 2016, total spending on IT infrastructure products (servers, enterprise storage and switches) for cloud environments will grow by 15 percent to $ 37.1 billion. This $ 37.1 billion refers to the procurement of both private and public clouds, including storage, servers, network equipment, and so on.

IDC's report notes that private cloud IT infrastructure spending grew 10.3 percent year-on-year to $ 13.8 billion, of which more than 60 percent were local private cloud environments. In 2016, public IT infrastructure spending will grow by 18.8% to $ 23.3 billion. In 2016, with the growth of public cloud investment higher than the private cloud IT infrastructure, all regions are expected to increase cloud IT infrastructure spending. In the context of a comprehensive cloud environment, Ethernet switches have the highest growth rate of 39.5%, while server and storage spending will grow by 11.4% and 14.2%, respectively.

In the long run, IDC predicts that in 2020, IT infrastructure spending in the cloud environment will grow at a CAGR of 13.1 percent to $ 59.5 billion. This represents 48.7% of the total IT infrastructure spending. In the same period, non-cloud IT infrastructure spending compound annual growth rate will decline by 1.4%. Cloud composite market, public cloud and private cloud IT infrastructure spending compound annual growth rate will increase by 18.8% and 10.3%. In 2020, IDC predicts that the public cloud service provider (CSP) will spend $ 38.4 billion on IT infrastructure to provide services, while private cloud IT infrastructure spending will amount to $ 21.1 billion.
 
Compared to cloud investment, 2016, the traditional non-cloud computing deployment of enterprise IT infrastructure spending will fall 4.4%, but still sitting on the largest share of end-user spending - 63.4%.

For IDC's report, we are more interested in this 37.1 billion US dollars, the optical communications products market can account for the proportion of how much? Here we give a few perspectives on the analysis of this problem:

First, about $ 3.7 billion is an optical communications product based on about 10% of the total number of exhibitors in Hong Kong's data center.
 
Second, we have integrated information from Finisar, Broadcom (formerly Avago), a leading provider of digital devices, and Finisar's annual sales of approximately $ 800 million from the number of products, Avago's product line is more complex, should be slightly lower than this number. Taking into account Luxtera, TE and other sales data and the situation of Chinese suppliers, coupled with the passive part of the connector, we estimate that about 2.5 billion -30 billion in sales of digital communications products belonging to the field.

Third, the optical fiber online 2015 its optical connector market report predicts that the market in the year about 21 billion yuan, taking into account the number of applications in the field of MPO connector prices higher, the number of departments can still account for the third Around the market, that is, one billion US dollars. In accordance with this ratio, the entire digital market demand for optical communications products are also 3 billion US dollars from top to bottom.

Fourth, according to Ovum and LightCounting and other Internet companies to estimate the procurement of optical communications products, the current Internet companies accounted for the entire optical communications products market accounted for one-third. In this ratio, the number of optical devices in the field market is also about 2.5 billion US dollars.

From the IDC forecast, we can see that as the proportion of cloud computing market investment in IT integration facilities increases year by year, the future growth rate of optical communication products in the cloud computing market is expected to exceed 13% of the CAGR forecast of IDC, which is about 15% The.

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