400 Gbps to Comprise Nearly 20 Percent of Data Center Switch Revenue by 2020, According to Dell’Oro GroupHigher Speeds – ≥100 Gbps – Forecast to Drive Significant Growth over Next Five Years

REDWOOD CITY, Calif., Jan. 30, 2018 (GLOBE NEWSWIRE) -- According to a recently published report by Dell’Oro Group, the trusted source for information about the telecommunications, networks, and data center IT industries, 400 Gbps is forecast to comprise 20 percent of data center switching revenue by 2020. Higher speeds – 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps – are forecast to drive signification growth over the next five years. “In December 2017, Broadcom announced its Tomahawk 3 chip based on 56G SerDes, joining both Innovium and Nephos,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “We expect merchant silicon based on 56G SerDes to drive growth in 200 Gbps and 400 Gbps shipments, with 400 Gbps comprising majority of the volume. By 2020 to 2021, we expect another speed upgrade cycle driven by 112G SerDes, which will drive 800 Gbps port shipments – plus another wave of 200 Gbps and 400 Gbps shipments.” The Ethernet Switch – Data Center 5-Year Forecast Report answers questions like: How is the Ethernet speed upgrade cycle different in the Cloud vs. Enterprise segments? How is the network topology different in the Cloud vs. Enterprise segments? What are the use case deployments for 100 Gbps, 200 Gbps, 400 Gbps, and 800 Gbps and how does deployment vary depending on the SerDes lane driving the speed?

http://markets.businessinsider.com/news/stocks/400-Gbps-to-Comprise-Nearly-20-Percent-of-Data-Center-Switch-Revenue-by-2020-According-to-Dell-Oro-GroupHigher-Speeds-100-Gbps-Forecast-to-Drive-Significant-Growth-over-Next-Five-Years-1014553624

Arista’s Software Will Let Them Grab ’400G’ Market, Says Morgan Stanley

Shares of networking equipment vendor #AristaNetworks ( #ANET ) are up $5.45, or 3%, at $187.17, after #MorganStanley s James Faucette raises his rating on the shares to Overweight from Equal Weight, and jacks his price target to $210 from $125, writing that he’s having to “eat humble pie” about his reservations on the company before. Faucette now believes the company will have a “time to market advantage” because of its software running on its switches, which will help it to capture the 400-gigabit-per-second market from #Cisco Systems ( #CSCO ) and others. Basically, Arista’s going to have a lot more market share and a lot higher margins, than he thought. Faucette now models the company hitting 19% market share in switching in 2020, versus his prior expectations for just 14%, and he thinks operating profit margin can be 32% for the company versus what he had been modeling as 25%. That higher market share already prompts Faucette to raise his estimates for Q3: he sees Arista delivering $415 million and $1.15 per share, up from a prior $370 million and 96-cent estimate. That’s just a little below consensus for $418 million and $1.18 per share. Arista’s operating system has already helped it scoop up share of the 100-gigabit networking switching market: Arista has been developing its software layer to allow for faster time to market since the company's inception in 2004. Most competitors only started to develop similar processor-agnostic software capabilities in ~2012. We think Arista also has cultivated at least some talent advantage. Arista's leadership has proven to be sustainable even as competitors (i.e. CSCO and JNPR) increasingly focus on merchant silicon-based products and large customers invest internally in white box engineering. As 10/40G sales began to transition to the 100G cycle, Arista saw accelerated market share gains, now capturing 26% share of 100G sales vs. mid-teens share of 40G sales. Now, the company’s going to take that same software approach and use it to ride 400G, he thinks: Share gains and growing demand for data center capacity have driven Arista's ROIC above both the hardware and software sectors. We think outsized returns will persist for several returns: 1. Early interest in 400G (although the 100G cycle is still in its first meaningful year) suggests the data center switching market will continue to grow at a healthy rate 2. Arista's time to market advantage is likely repeatable for 400G 3. Continued opportunities to disrupt large adjacent markets (routers, campus switching, optical) with new merchant silicon-based technologies As a result of its competitive advantages, we now expect Arista to achieve 19% share of the data center switching market by 2020 (or 10% of the entire ethernet switching market), up from our previous assumption of around 14%. We expect share gains to be driven by continued wins in data center buildouts likely at the expense of most vendors, but we also note that ~30% of current 100G sales were sales by vendors besides Cisco and Huawei. Arista continues to outperform its operating margin goal of "mid-20s", and we now believe low 30% operating margins is sustainable. Combined with higher share gains, incremental operating leverage in our model lead us to believe that Arista will track to $8 per share earnings by FY20.

http://www.barrons.com/articles/aristas-software-will-let-them-grab-400g-market-says-morgan-stanley-1505928646

AT&T Completes Industry-Leading 400 Gb Ethernet Testing, Establishing A Future Network Blueprint for Service Providers and Businesses

DALLAS, Sept. 8, 2017 /PRNewswire/ -- AT&T* successfully completed testing a single-wavelength 400 gigabit Ethernet (# GbE) data speed across its production network. This was the final phase of our multi-step trial. This trial of an IEEE standards-based #400GbE end-to-end circuit demonstrates our intent to lead the industry in providing next-generation speeds – helping transform the way our customers do business. "Introducing 400 GbE is a natural next step. Customer demands have shifted to faster speeds, more video-centric content and cloud integration," said Roman Pacewicz, chief product officer, #ATTBusiness. "We consistently provide top-quality services to businesses and are proud to pave the way for this industry innovation." This industry-first also aligns with our shift toward an open and software-centric network. Utilizing open-source controller technology, the end-to-end service transported across the AT&T #OpenROADM metro network – using optical gear from #Ciena, a developer of next-generation coherent optical solutions – provides further flexibility and cost-effective services for customers. Prior to this successful trial, all other field demonstrations have required multiple wavelengths to create a #400GbE connection. A next-generation network speed provides businesses like online video streaming services, search engines and mobility companies with the ability to transfer massive amounts of data at record speeds. For example, a service provider could transport: Approximately ten, 2-hour movies in less than a second 100,000 streaming movies at the same time We also used open-sourced white boxes to act as network equipment during the trials. This additional flexibility helps control costs and create interoperability between the foundational hardware elements of the network. Thanks to the successful completion of these trials, we can upgrade our network backbones to offer 400 GbE and prepare to offer ultra-fast speeds to businesses – helping to meet their growing demand for more bandwidth.

http://www.prnewswire.com/news-releases/att-completes-industry-leading-400-gb-ethernet-testing-establishing-a-future-network-blueprint-for-service-providers-and-businesses-300516611.html