Telecom Equipment “Megamergers” to Drive ATCA Adoption, IDC Says
FRAMINGHAM, MA – October 27, 2008 – Advanced Telecommunications Computer Architecture (ATCA) is a key technology that continues to impact how next-generation telecommunications equipment is developed by server vendors, system integrators, and network equipment providers (NEPs). Despite some hurdles, IDC believes the xTCA market – which also includes the microTCA form factor – is on track to reach $2.65 billion in 2013.
"Megamergers of large telecommunications equipment manufacturers, including Alcatel-Lucent and Nokia-Siemens, will have the most significant impact on the xTCA market between 2008 and 2013," said Lee Doyle, group vice president and general manager, Network Infrastructure and Security Research at IDC. In the short term, demand will be hindered as ATCA platforms are put on hold or delayed as these companies develop their strategies. In the longer term, however, these megamergers, which account for approximately 25% of overall telecommunications equipment revenues, will create increased xTCA demand as the logic of standard platforms takes hold.
"Increased business volumes will necessitate the move toward standardization, and ATCA will be that standard," Doyle said.
Additional findings from a new IDC study include the following:
* The NEP community is very supportive of ATCA and commercial off-the-shelf components (COTS).
* Rates of adoption for COTS-based components varies by company.
* Insourcing at major NEPs is negatively affecting xTCA adoption.
* HP has exited the ATCA market, while IBM pushes its BladeCenter products.
* Linux is changing the software makeup of network infrastructures through new devices at the control layer and network layer.
The IDC special study, ATCA Adoption in the Telecommunications Industry, 2008-2013 Forecast and Analysis (IDC #212774), presents an in-depth investigation of issues such as the scope, attitudes, and timing of adoption of ATCA and COTS platforms by NEPs. It provides IDC’s forecast of xTCA adoption in the telecommunications industry over the next five years. This document is based on structured interviews with leading NEPs around the world. IDC provides a high-level summary of the survey results from 25 NEP executives via quantitative tables describing their adoption of COTS and ATCA.
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