Survey Sez 08/30/12

Turnkey managed video platforms (MVPs) will grow faster than will well-known content delivery networks (CDNs) from such providers as Akamai and Limelight and from such online video platforms (OVPs) as Brightcove and Ooyala. Synacor, MobiTV and QuickPlay lead the MVP pack, says ABI Research, and each has its own focus. “MVPs distance themselves from the OVP competition by taking on more risk, in some cases licensing content directly and in other cases making revenue sharing relationships rather than charging on a per-asset delivered rate,” says Sam Rosen, practice director/TV & Video. MVPs could see growth of 135 percent from 2012 to 2017, while the video platform market as a whole will grow 105 percent, the firm predicts; however, MVPs also are likely to experience more profitability than other video-platform players…“The microwave equipment market rebounded nicely in the second quarter, thanks to strong performances from Ericsson and Huawei. Huawei had a huge quarter, its biggest ever for microwave equipment” comments Richard Webb, directing analyst/Microwave at Infonetics Research. “Despite choppy performance in recent quarters, we expect the microwave equipment market to grow to $6 billion by 2016, driven by a continuing demand for increased mobile-backhaul capacity and the proliferation of small cells.” According to a recent Infonetics report, the global microwave-equipment market totaled $1.2 billion in 2Q12, up 16 percent from the previous quarter and down 6 percent from 2Q11…On the other hand, global optical networking (ON) equipment spending in 2Q12 declined, despite growth of 6 percent and 19 percent in Asia-Pacific and in South & Central America (SCA), respectively, compared with 2Q11, adds Ovum. Given 1H12 performance, growth this year “will be unlikely without a very big bang in the fourth quarter,” it predicts. The global decline mainly was driven by spending softness in North America and EMEA, each down 19 percent, to $876 million and $950 million, respectively.The market will need a big 4Q12 to boost 2012 spending. But, as third quarter spending historically declines from 2Q, Ovum does not assume any improvements next quarter. Notes Dana Cooperson, vice president and practice leader/Network Infrastructure, “Prospects for North American Tier Two carriers are improving, but any growth in spending may not make up the gap for vendors that depend on spending by the largest carriers.”