Growth of NBASE-T: Market Trends & Forecasts from 650 Group. May 7, 2018 NBASE-T AllianceSM
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1 Growth of NBASE-T: Market Trends & Forecasts from 650 Group May 7, 2018 NBASE-T AllianceSM
2 Today s Speakers Alan Weckel Founder and Technology Analyst 650 Group Peter Jones Chairman, NBASE-T Alliance Distinguished Engineer, May 7, 2018 NBASE-T AllianceSM
3 Agenda NBASE-T Overview Peter Campus Market Overview Alan Current BASE-T Market Adoption Alan Wrap-up & Discussion Alan May 7, 2018 NBASE-T AllianceSM
4 NBASE-T Alliance NBASE-T Alliance ( Vendor alliance for 2.5G/5G BASE-T Who is in the Alliance? Member companies representing all areas of network infrastructure including components, silicon, systems, cabling, testing equipment Alliance role? Educate the market about multiple applications of the technology, enable widespread deployment, facilitate interoperability and augment the specification when needed Alliance Strength - Full Ecosystem May 7, 2018 NBASE-T AllianceSM
5 NBASE-T Application Areas Enterprise: Switch Wireless AP Desktop Storage Small Cell Industrial: Switch Wireless AP Workstation Storage Compute Machine Vision Home: Switch Wireless AP Storage Server Home Gateway Streaming Service Provider: Small Cell Home Gateway May 7, 2018 NBASE-T AllianceSM
6 NBASE-T Products May 7, 2018 NBASE-T AllianceSM
7 Value of NBASE-T Technology Leverages more than 1.3+ billion Cat5e/Cat6 outlets and more than 70 billion meters of Cat5e/Cat6 cables that make up greater than 90% of the current installed base Enables network evolution by providing up to 10x faster speed without pulling cables or requiring building construction Supports high-speed links to next generation WiFi access points and high-data rate client PC and workstation systems May 7, 2018 NBASE-T AllianceSM
8 CAMPUS MARKET OVERVIEW May 7, 2018 NBASE-T AllianceSM
9 650 Group We started 650 Group to provide our subscribers and customers with a unique perspective on the industries we research. Our team has decades of experience researching our focus industries and in roles at companies similar to the ones we cover. We research the data center, communications and Information Technology markets. Founded in 2017 by Chris DePuy and Alan Weckel Headquartered in Silicon Valley Trusted source of research for system vendors, component manufacturers, service providers, sell-side, buy-side, and standards bodies May 7, 2018 NBASE-T AllianceSM
10 Ethernet Switch Enterprise/Campus: Total Port Shipments Continued near-term port growth Strong upgrade market in North America Continued growth in China Vendor Consolidation Avaya -> Extreme Brocade (campus) -> Arris Xirrus -> Riverbed NBASE-T replacing 1 Gbps WLAN APs need >1 Gbps speeds PC market forming May 7, 2018 NBASE-T AllianceSM
11 Installed Base of Ethernet Switch Ports Continues to Grow Switch Port Installed Base (>1.2 B Ports end of 2016) >1 Gbps Projected Switch Port Installed Base(>1.5 B Ports end of 2022) 3% 5.0 Gbps > 5.0 Gbps 4% 100 Mbps 2.5 Gbps 3% 11% 4% 100 Mbps 36% 1 Gbps 61% 1 Gbps 78% May 7, 2018 NBASE-T AllianceSM
12 Vendor Positioning 2017Revenue Vendor Cisco HPE Huawei H3C Extreme Campus Switch Enterprise WLAN China Vendor Influence Share 62% 9% 8% 4% 2% Vendor Cisco HPE Huawei Ubiquiti Ruckus Share 44% 15% 7% 6% 5% Increasing Strong growth in Europe Battleground in emerging markets NBASE-T replacing 1 Gbps WLAN APs need >1 Gbps speeds PC market forming Others 15% Others 23% May 7, 2018 NBASE-T AllianceSM
13 WLAN/Campus Switchrevenue: 4Q17 RevenueDistribution May 7, 2018 NBASE-T AllianceSM
14 Push Towards RecurringRevenue Percentage of Revenue (%) Ethernet Switch Market (General Market Transition) Services Hardware Cloud/SaaS Software Vendors looking to transition towards recurring revenue Multiple business models Cloud/SaaS Subscription Some vendors remain hardware based ASC606 Accounting How vendors account for software is changing May 7, 2018 NBASE-T AllianceSM
15 NBASE-T MARKET ADOPTION May 7, 2018 NBASE-T AllianceSM
16 Ethernet Switch Enterprise/Campus: Unique PortShipments Switching transitioning into an infrastructure role and away from a user connectivity role Client Device Migration 100 Mbps -> 1 Gbps 1 Gbps -> NBASE-T Uplink and Core Migration 10 Gbps -> 25 Gbps 40 Gbps -> 100 Gbps May 7, 2018 NBASE-T AllianceSM
17 More Than Just a WLAN Technology High-end workstations Becoming more popular with each PC refresh Laptop docks and dongles Home use Gaming adpaters CPE deployments Cameras and IOT Increased adoption in cameras Large sensors / fast framerates May 7, 2018 NBASE-T AllianceSM
18 Vendor s with Offerings of 2.5 and 5.0 Gbps Ports 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ethernet Switches WLAN APs May 7, 2018 NBASE-T AllianceSM
19 Ethernet Switch NBASE-T: Total Port Shipments (2.5 and 5.0 Gbps) May 7, 2018 NBASE-T AllianceSM
20 Ethernet Switch NBASE-T: Total Port Shipments (2.5 and 5.0 Gbps) May 7, 2018 NBASE-T AllianceSM
21 Wrap-up &Discussion May 7, 2018 NBASE-T AllianceSM
22 Wrap-up & Discussion Ethernet switch and WLAN markets are evolving to be more consumption based (OPEX) instead of strictly purchased (CAPEX) NBASE-T is becoming more popular amongst users NBASE-T adoption is beyond switching and WLAN NBASE-T cable infrastructure preservation drives ROI May 7, 2018 NBASE-T AllianceSM
23 Thank you! Visit & for more information May 7, 2018 NBASE-T AllianceSM
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