MERCHANT ADVANCED TCA MARKET

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MERCHANT ADVANCED TCA MARKET
28 September 2005 - Venture Development Corporation

Venture Development Corporation's new study of the global AdvancedTCA and MicroTCA equipment market, Advanced Telecom Computing Architecture and MicroTCA Components and Solutions, indicates that these two architectures will comprise a majority of open standards-based Communications Computing Equipment by 2009.

The study, based primarily on primary research among Communications Computing Equipment vendors, TEMs and Service Providers, projects that the total market for open standards-based equipment will comprise US$ 12.6 billion in 2009. ATCA and MicroTCA, combined, will represent about 64% of this total.

According to J. Eric Gulliksen, Embedded Hardware Practice Director at VDC, 'It is quite clear that ATCA and its future offspring, MicroTCA, represent significant steps forward into the future of embedded communications computing. However, despite our projection that ATCA and MicroTCA will reach nearly US$ 8 billion in 2009, most of this will comprise 'captive' shipments rather than 'merchant' shipments. Therefore, although merchant vendors will see a very nice increase in business over the next several years, for these firms to capture the dominant share of the market is by no means a 'slam dunk!'

Gulliksen went on to point out that, of those TEMs and ODMs that have indicated that they will support ATCA, some have said that they expect to design and manufacture between 60% and 100% of this equipment themselves rather than purchasing it from outside vendors. 'We don't think that it makes much sense for TEMs and ODMs to design and manufacture everything in-house,' he said. 'Surely more generic component-level products, such as basic platforms, chassis, backplanes, PEMs, SSMs and CPU Blades will ultimately be purchased outside from low-cost, high-volume suppliers. Similarly, it makes little sense for TEMs and ODMs to design and manufacture highly specialized, relatively low-volume Blades or AMC cards that lie outside of their own core competencies. These, too, will ultimately be procured from merchant vendors. However, those board-level components that fall between these extremes offer opportunities for product differentiation at the systems level, and constitute a significant portion of both the initial purchase and spares markets. Therefore, these are very likely to remain in-house, captive products.'

http://www.vdc-corp.com

About: Venture Development Corporation
Venture Development Corporation (VDC) is an independent technology market research and strategy consulting firm that specializes in a number of industrial, embedded, defense and niche enterprise IT markets. VDC has been operating since 1971, when graduates of the Harvard Business School and Massachusetts Institute of Technology founded the firm. Today, we employ a talented collection of analysts and consultants who offer a rare combination of expertise in the market research process; experience in technology product and program management, and formal training in engineering and marketing. VDC's clients include thousands of the largest and fastest growing tech suppliers in the world and the most successful investors participating in the markets we cover.

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