Service provider CapEx spending made a nice rebound in 2004 with worldwide spending totaling $207 billion, indicating a brighter future for the service provider WAN equipment market, reports In-Stat. Service provider CapEx budgets will continue to grow moderately over the next five years, as wireline service providers invest in new triple-play and converged MPLS networks, and wireless service providers build new 3G infrastructure, the high-tech market research firm says. Worldwide service provider CapEx budgets are forecast to reach $278 billion in 2009. "In-Stat forecasts particularly strong growth in sales of packet telephony media gateways and softswitches, core and edge routers, WiMAX base transceiver stations, and teledatacom servers, in 2005," says Henry Goldberg, In-Stat analyst. "Sales of multiservice switches, optical transport equipment, and DSLAMs should also grow." The largest component of worldwide WAN equipment sales in 2004 was mobile wireless infrastructure, which was about 29 percent of total worldwide network CapEx budgets. Voice circuit switches, which used to be the largest component of wireline networking hardware, accounted for only about 5 percent of WAN equipment sales to service providers in 2004. DSLAM port shipments continued to grow strongly in 2004, but revenues declined because of reduced prices due to stiff competition among suppliers.
The global cloud computing market is undergoing new significant growth, driven by the rapid adoption of artificial intelligence (AI) and the demand for flexible, scalable infrastructure. The recent market study by International Data Corporation (IDC) provides compelling evidence of this transformation, highlighting the accelerating growth in cloud infrastructure spending and the pivotal role of AI in shaping the industry's future trajectory. Shared Infrastructure Market Development The study reveals a 36.9 percent year-over-year worldwide increase in spending on compute and storage infrastructure products for cloud deployments in the first quarter of 2024, reaching $33 billion. This growth substantially outpaced non-cloud infrastructure spending, which saw a modest 5.7 percent increase to $13.9 billion during the same period. The surge in cloud infrastructure spending was partially fueled by an 11.4 percent growth in unit demand, influenced by higher average selling prices, primari