AdvancedTCA Growing Quickly

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AdvancedTCA Growing Quickly

AdvancedTCA will make its mark in the steadily growing Open Standards Chassis (OSC) market over the next several years, according to In-Stat. The AdvancedTCA portion of the OSC market will grow steadily from $221 million in 2004 to multiple billions of dollars in 2009, the high-tech market research firm forecasts. There are several drivers pushing along the AdvancedTCA and overall OSC markets. A recent driver is telecommunications providers that are attracted to OSCs in networking equipment because of potential cost savings.

"When you look at which types of companies are advocating standardized chassis, you find that they are mostly either chipmakers or Network Equipment Providers (NEPs)," says Eric Mantion, In-Stat analyst. "However, In-Stat expects to see service providers start to support these standards, as they become more aware of how these specifications can help improve their own bottom line."

In-Stat has also found that:

  • The overall OSC market includes many platforms beside AdvancedTCA, including CompactPCI, CompactTCA, MicroTCA, and IBM's BladeCenter.

  • There is an extra layer of optimism surrounding OSCs since it seems very likely that merchant silicon makers will springboard off this platform to truly bring about the shorter time-to-market metrics that have been promised over the last several years.

  • Standardized hardware can help to make the creators of equipment more profitable, while still driving the cost to service providers down, so that they too can improve their margins.

  • While the communications market is expected to be the first area of growth for the AdvancedTCA, it will also start penetrating into other markets, such as Military, Medical/Industrial, and, eventually, Enterprise.

Why is this important? Simply stated open standards such as in the chassis/computer market are good for markets. Service providers will be looking to provide more services that are processor intensive such as voice video, gaming, conferencing, etc. The margins are simultaneously being squeezed out of voice. Anything that reduces service provider cost while enabling flexibility to add new services is welcome.



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