This document provides an overview and analysis of network evolution and market outlook trends from March 2017. It discusses how digital transformation is driving the need for greater network scale to support cloud applications and services. Public cloud datacenter networks are growing significantly, with spending on Ethernet switching for cloud providers reaching nearly $5 billion by 2020. Telecom networks are evolving to support new virtualized and software-defined network services. Enterprise networks are adopting SD-WAN and migrating more applications to the cloud. The document analyzes trends in datacenter networking, software-defined networking, network disaggregation, and the priorities and investments of telecommunications service providers.