
Webscale Network Operators: 3Q23 Market Review
Description
Webscale Network Operators: 3Q23 Market Review
This report reviews the growth and development of the webscale network operator (WNO) market since 2011. In the most recent 12 months (4Q22-3Q23), webscalers represented $2.32 trillion (T) in revenues (+3.7% YoY), $289 billion (B) in R&D spending (+13.1% YoY), and $192B in capex (-3.8% YoY). They had $710B of cash and short-term investments (+16.2% YoY) on the books as of September 2023, and $562B in total debt (+3.1% YoY). Webscalers employed approximately 4.099 million (M) people at the end of 3Q23, slightly up from 2Q23 but down 1.6% from September 2022.
In 3Q23, webscalers spent $48.0B and $72.2B on capex and R&D, respectively.
For capex, the result represents the second consecutive 9% YoY decline. We have already issued a revised forecast alert, and expect full year capex to come in about 5-10% lower than projected. None of the key webscalers are in trouble, and all expect future growth in capex, with generative AI an additional driver for investment. For R&D, actual spending in 3Q23 was 4.7% higher than 3Q22; however, for once R&D spend grew more slowly than revenues, pushing 12 month R&D intensity down slightly, to 12.4% of revenues. Generative AI is one of many focal points for webscale R&D. Webscalers are also spending heavily on R&D to develop their own chips and customized data center designs.
Please Note: This product is delivered as a Excel File.
Table of Contents
- Abstract
- Analysis
- WNO Market: Key Stats
- Company Drilldown
- Top 8 WNOs
- Company Benchmarking
- Regional Breakouts
- Raw Data
- Exchange Rates
- About
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.