Friday, December 16, 2022

Dell'Oro: Wireless LAN revenues defy ongoing supply problems in Q3

 The Wireless LAN market hit a new record of $2.4 Billion in the third quarter, despite the continuing supply bottlenecks and representing a surprising 32 percent year over year growth, according to a recently published report from Dell'Oro Group. Meanwhile, manufacturers still have a huge pile-up of backlogged orders.

“The third quarter saw the second highest level of shipment volumes in history – a testament to manufacturers’ excellent navigation of the supply constraints,” said Si├ón Morgan, Wireless LAN Research Director at Dell’Oro Group. “Their strategies of redesigning products, expediting components, and turning to brokerage firms are coming to fruition. On top of this, the high adoption of Wi-Fi 6 is driving up prices, having an accelerating effect on revenues.

“We predict that the fourth quarter will be another record, with prices rising for the 6th quarter in a row, and shipment volumes skyrocketing. We’re also making the bold prediction that next year the Enterprise Class Wireless LAN market will break the $10 Billion mark,  two years earlier than we predicted,” added Morgan.

Additional highlights from the 3Q 2022 Wireless LAN Quarterly Report:

  • Wi-Fi 6E volumes are still lagging the adoption rate of the three prior Wi-Fi technologies, while the new 6 GHz ecosystem develops and the industry plans for the arrival of Wi-Fi 7.
  • A shift is underway in China, with Huawei ramping up its Wireless LAN shipments and seeing a drop in unit prices as the company expands to new market segments.
  • Of the major manufacturers based outside China, HPE Aruba and Ubiquiti represented the largest portion – over 75 percent – of unit shipment growth.
  • Arista and Ruijie Networks, two companies each with a small Wireless LAN market share, made bold moves focusing on expansion.
  • Public Cloud managed APs are growing faster than the market and represented 30 percent of Wireless LAN revenues.

https://www.delloro.com/news/record-level-3q-2022-wireless-lan-revenues-defy-ongoing-supply-problems/

Dell'Oro: Enterprise spend to remain vigorous in 2023

The ongoing need to modernize the network and security architecture for branch offices and hybrid users led to the vigorous 33 percent revenue growth in the SASE market, according to a recent report from Dell'Oro Group, which also anticipates that enterprises will continue to place a high priority on SASE and cause the overall SASE market to grow to $8 B for the full year 2023.

“3Q 2022 was the seventh consecutive quarter of year-over-year SASE revenue growth topping 25 percent, which signals the importance enterprises are placing on SASE,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “Unlike some other network security markets we track, we expect the high investment priority will continue and lead to the SASE market eclipsing $8 B in 2023,” added Sanchez.

Additional highlights from the 3Q 2022 SASE & SD-WAN Quarterly Report:

SASE security, also referred to as SSE (the basket of products providing cloud-delivered SWG, CASB, ZTNA, and FWaaS), achieved its tenth consecutive quarter of sequential revenue expansion.

SASE networking, synonymous with SD-WAN, had a challenging Y/Y comparison in 3Q 2022 against a very strong 3Q 2021 when enormous pent-up demand was a significant driver. Nonetheless, the ongoing trend of improved supply chains allowed vendors to better service demand and sustain a similar level of market growth compared to recent quarters.'

https://www.delloro.com/news/strong-enterprise-demand-drives-sase-growth-33-percent-in-3q-2022/

 

BT award 5-year contract to Nokia for analytics software

BT awarded a five-year contract to Nokia for its AVA Analytics software for fixed networks. The project aims to help BT strengthen its network monitoring through AI and machine learning, and improve its subscriber experience.

The deal enhances Nokia’s dashboard solution (“Homeview”) for BT to give its call center agents a real-time, full view of the operator’s network, from individual subscribers to devices, in order to quickly correct access and in home issues, and provide the best service across all its phone and digital channels.

Nokia’s AVA Analytics will provide BT with the use of automated workflows with deep analytics to deliver operational efficiency improvements and boost BT’s net promoter scores (NPS). NPS is a barometer of how likely a customer would recommend a provider or service to another user.

Along with AVA Analytics, Nokia’s Home Device Manager and Service Management Platform enables BT’s roughly 6,000 care agents to remotely manage over 10 million WiFi connections, with more than 100 million actions taken each day to optimize the home broadband experience for BT’s customers.

Nick Lane, Managing Director for Consumer Customer Services at BT, said: “Our expanded partnership with Nokia is another demonstration of our commitment to providing the best customer experience by investing in AI, analytics, and other state-of the-art technology. Our partnership will help BT’s customer service agents provide the best service across all phone and digital channels and continue to make BT the only network to answer 100% of customer calls in the UK.”

Hamdy Farid, Senior Vice President, Business Applications at Nokia, said: “Nokia AVA Fixed Network Insights is a critical component to helping operators improve network diagnosis and troubleshooting processes, while reducing unnecessary manual fixes. We are very pleased to be taking our partnership with BT to the next level with this agreement.”

NTIA seeks public comment on Open RAN funding under CHIPS Act

The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) is seeking public comment  on the development and implementation of the Public Wireless Supply Chain Innovation Fund (Innovation Fund).

The Innovation Fund is a $1.5 billion grant program that will support the promotion and deployment of open, interoperable, and standards-based radio access networks (RAN). Authorized under the FY 2021 National Defense Authorization Act and funded through the CHIPS and Science Act of 2022, this historic investment aims to strengthen U.S. leadership in the global telecommunications ecosystem, foster competition, lower costs for consumers, and strengthen our supply chain.

NTIA is charged with administering the Innovation Fund and establishing criteria for grants awarded. The comments submitted will provide vital input and recommendations for consideration in the development and implementation of NTIA’s Innovation Fund grant program.

“The highly consolidated global market for wireless equipment creates serious risks for both consumers and U.S. companies,” said Alan Davidson, Assistant Secretary of Commerce for Communications and Information and NTIA Administrator. “Our $1.5 billion fund will jumpstart innovation in the industry and open it up to a more diverse set of suppliers. We expect the increase in competition to lead to more secure, resilient and cost-effective networks.”

Commenters are encouraged to address any or all the questions in the Request for Comment. Written comments may be submitted to regulations.gov by 5 p.m. Eastern Standard Time on January 27, 2023. All comments submitted will post publicly on Regulations.gov.

https://ntia.gov/press-release/2022/ntia-requests-public-comment-chips-and-science-act-innovation-fund