File this under, it ain’t all bad. Despite the deep cuts in spending expected this year due to the global economic recession, service providers will still increase spending on Carrier Ethernet equipment by double digit percentages, according to Infonetics Research.
That can only be good news to Cisco and every other vendor making and selling Carrier Ethernet gear.
Spending on Carrier Ethernet equipment was $17 billion in 2008 and will increase to $32 billion in 2013, a CAGR of 13.5%, according to Infornetics. Meanwhile, service provider capital expenditures decreased about 20% in Q1 of this year, according to investment firm UBS.
I guess that means Carrier Ethernet is a recession proof technology? Or that the business case for both consumer and provider is too compelling to overlook and underspend?
The largest investments will be in IP core and edge routers, Carrier Ethernet switches and optical gear, Infonetics says. And worldwide sales of Ethernet access devices with OA&M and support for E-Line and E-LAN services are expected to increase at a CAGR higher than carrier Ethernet equipment in general, Infonetics says, and much higher than the slowly growing – or declining — CAGR of telecom capex.
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