Market Insight

Growth Elusive as Carrier Capex Shrinks

July 05, 2016  | Subscribers Only

Heidi Adams Heidi Adams Senior Research Director, Transport Networks

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As the industry waits for 5G and SDN standards and technology to mature and the next wave of network investments to ramp, network equipment vendors with significant exposure and dependency on shrinking telco capex spending are forced to get more creative in order to deliver the higher levels of growth demanded by their shareholders and/or owners. This Analyst Insight takes a closer look at some of the different growth strategies in play across a range of players in the network equipment market as revealed at 4 recent analyst events hosted by Nokia, Huawei, Juniper, and Ciena. Though this represents a mix—2 large integrated vendors, a specialist routing vendor, and a specialist optical networking vendor—all face the same challenge of shifting from being hardware oriented to more software oriented, and all have a significant exposure to service providers who themselves are facing challenges in an increasingly competitive market.

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