Webscale Network Operators: 1Q19 Market Review - Webscale Spending Continue to Soar as Large Network Operators Invest in Cloud and AI, and Explore New Market Avenues
|発行||MTN Consulting, LLC||商品コード||753492|
|Webスケールネットワークオペレーター(WNO) ：市場レビュー Webscale Network Operators: 1Q19 Market Review - Webscale Spending Continue to Soar as Large Network Operators Invest in Cloud and AI, and Explore New Market Avenues|
|出版日: 2019年07月26日||ページ情報: 英文||
当レポートでは、：Webスケールネットワークオペレーター (WNO) に注目し、収益、Capex、R&D支出、セグメント別の収益、広告収入、およびサプライヤー契約数など、市場における主要統計を提供しています。
MTN Consulting's 1Q19 WNO Market Review analyzes the network infrastructure spending and financial position of webscale network operators (WNOs).
WNOs are web-centric companies whose operations and services rely heavily on hyperscale data centers and supporting connectivity. They typically have tens or hundreds of millions of customers/users, and rely heavily on scale and network effects in quest for profitable growth. Most WNOs build and operate data centers, but some rely largely on rented/leased resources. Netflix, Snap and Twitter are notable examples. Each of these spends heavily on cloud resources from other providers and is a candidate to build organically in the future. Or, purchase existing assets during a market adjustment.
WNOs tracked in this report include the "Top 8" companies (Alibaba, Alphabet, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent) and over 20 others: Altaba, Booking Holdings (formerly Priceline), ChinaCache, Cognizant, eBay, Fujitsu, HPE, IBM, JD.COM, LinkedIn, Netflix, Oracle, Qihoo 360, Salesforce.com, SAP, Sina, Snap, Sohu, Twitter, Weibo, Xunlei, Yandex, and YY.
More details are available in the "sample file," above
"After spending big in 2018, global technology companies continued to expand their "webscale" networks in 1Q19, investing over $110B in capex over the last 12 months.
Webscale networks are mostly centered around immense, "hyperscale" data centers and undersea cable systems that support network traffic from the tech companies' online retail, video, and social media platforms, along with cloud services. Not just that, some tech-bigwigs including Amazon, Facebook, Alphabet, and Microsoft are now looking to conquer another frontier - outer space - for providing connectivity to the underserved and unserved markets.
After surpassing $100B in capex for the first time in a single year in 2018, the companies in this webscale network operator (WNO) sector invested $110.6B in the twelve-month ending 1Q19, up by a robust 22.7% YoY. This surge impacted the sector's cash & short-term investments which fell by 3.0% YoY during the same period. Free cash flow margins, however, saw no impact as they witnessed a mild uptick in 1Q19 compared to previous quarter, on an annualized basis. The capex hike was primarily led by the "Top 8" webscale companies composed of eight leading technology firms - Alibaba, Alphabet, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent.
Webscale operators continue to branch into new markets, including hardware, both through R&D and acquisitions. M&A activity in the sector remained vigorous in 2018, with Alphabet, Amazon, Microsoft, Oracle, and Salesforce each recording sizable related costs. The M&A climate remains strong for the sector given its high cash reserves. Total debt for the sector is manageable overall, at $446.1B in March 2019, or $186.1B less than cash & stocks. Some individual companies could face debt issues in an economic downturn, however, or due to regulatory pressure."