ATCA Outlook Still Strong, But COTS Vendors Face Significant Challenges, New Report Finds

Increasing use of in-house system integration, software, and components threatens suppliers of commercial off-the-shelf (COTS) ATCA solutions, Heavy Reading finds

Oct 1, 2009

Revenues from Advanced Telecom Computing Architecture (ATCA), MicroTCA, and Advanced Mezzanine Card (AMC) systems are expected to near $800 million this year and grow to about $6.7 billion in 2012, but a large part of that growth is coming from in-house development by telecom equipment manufacturers, rather than from suppliers of commercial off-the-shelf (COTS) products, according to a new report and forecast from Heavy Reading (, the research unit of Light Reading.

ATCA, AMC & MicroTCA Market Update & Forecast identifies and analyzes the full spectrum of vendors developing ATCA, AMC, and MicroTCA components and systems. The report includes not only granular information on the components and systems themselves - featuring thousands of comparative data points covering more than 500 products - but also insights into how the overall market is developing. The report evaluates and analyzes the products and strategies of 10 systems integrators and 46 component suppliers. The report also includes a market forecast for ATCA products through 2012, with a breakdown of COTS market share, and presents information on the usage of ATCA, MicroTCA, and AMC modules by 13 telecom equipment providers.

  For a list of companies covered in the report, please see:

The 94-page report offers an exclusive and updated market forecast for ATCA products through 2012, providing deep insight into how ATCA and related technologies will continue to reshape the telecom and networking equipment industries.

"The ATCA market is seeing significant growth, as carriers continue to roll out new systems and IP-based infrastructure," notes Simon Stanley, Analyst at Large with Heavy Reading and author of the report. "Many vendors have committed to ATCA across multiple markets, developing standard platforms that are used by several product groups."

But the overall growth of ATCA and related technologies is masking a troubling trend for suppliers of COTS products, Stanley says. "Many telecom equipment makers are opting to use in-house system integration, software, and components for their ATCA initiatives, reducing the market opportunity for COTS vendors and system integrators," he explains. "In fact, the proportion of the ATCA market derived from in-house development is likely to exceed revenues derived from COTS products in 2010."

Key findings of ATCA, AMC & MicroTCA Market Update & Forecast include the following:

The ATCA sector will grow from $798 million in 2009 to $6.7 billion in 2012 - a compound annual growth rate of 103 percent over that span. With second-generation platforms already in production, ATCA-based system shipments are growing quickly.

The COTS share of the ATCA market will fall below 50 percent by 2010, before recovering in 2011. As companies such as Alcatel-Lucent ship more systems based on in-house ATCA components, the COTS market share will fall, before recovering slightly as the market matures.

ATCA-based 2G/3G/4G wireless systems from multiple equipment vendors are delivering new flexibility for carriers. By using a single platform for several generations of wireless technology, network equipment providers can offer 2G and 3G solutions now, with simple upgrades to Long Term Evolution (LTE) or WiMax when required.

IP Multimedia Subsystem (IMS), LTE, and Evolved Packet Core (EPC) systems based on ATCA are now being used for trials and network deployments. ATCA market growth is partly being driven by carrier investment in these key technologies.

More than 200 AMC modules are now available from 35 vendors, with several new market entrants. AMCs are now available for central processing unit (CPU), digital signal processor (DSP), storage, packet processing, networking, and general input/output (I/O) applications.

ATCA, AMC & MicroTCA Market Update & Forecast is essential reading for a wide range of industry participants, including the following:

  --  Telecom equipment manufacturers: How does your ATCA/MicroTCA
      deployment strategy match up to your competition? Which component and
      subsystem vendors are taking the lead in ATCA, AMC, and MicroTCA
      product availability? Which products are available, and which are
      still vaporware? Are your suppliers stepping up to meet your
      anticipated timetable for ATCA and related products?

  --  Component and subsystem manufacturers: Are you ahead of the curve in
      ATCA and MicroTCA deployment, or are you falling behind? Which product
      areas present the most attractive opportunities? How is demand for
      ATCA, AMC, and MicroTCA likely to develop in the systems market?

  --  Systems integrators: How do your partnership channels for ATCA, AMC,
      and MicroTCA deployment measure up? Are there other potential partners
      that are capable of delivering products that you need now to meet your
      clients' needs?

  --  Network operators: How will ATCA's continued development affect your
      supply-chain relationships? When can you expect to see meaningful cost
      reductions from the move to ATCA, and how big a cost benefit will you
      get? Which vendors will be in the best position to deliver the
      products you need to build your next-generation network?

  --  Investors: Which equipment makers are in the best position to capture
      market share in this important telecom industry sector? When will this
      sector begin to show meaningful and sustainable growth?

ATCA, AMC & MicroTCA Market Update & Forecast costs $3,995 and is published in PDF format. The price includes an enterprise license covering all of the employees at the purchaser's company.

  For more information, or to request a free executive summary, contact:

  Dave Williams
  Sales Director, Heavy Reading

  Press/analyst contact:
  Dennis Mendyk
  Managing Director, Heavy Reading

  About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

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SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, Heavy Reading, +1-858-485-8870,, or press/analyst, Dennis Mendyk, Managing
Director, Heavy Reading, +1-201-587-2154,

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