SOURCE: Infonetics Research

June 05, 2007 14:14 ET

WAN optimization market down for the quarter, up big year-over-year; enterprise router sales down 6%

BOSTON, MA--(Marketwire - June 5, 2007) - After a 31% increase in the 4th quarter, the burgeoning WAN optimization market dipped 4% to $106 million worldwide in the 1st quarter of 2007, but is up 61% from a year ago, according to Infonetics Research's latest "Enterprise Routers & WAN Optimization Appliances" report.

Infonetics predicts strong double-digit annual growth in the worldwide WAN optimization market through 2010, when it will reach $652 million.

Meanwhile, the enterprise router market took an unexpected downward turn in the first quarter of 2007, with worldwide revenue dropping 6% to $1 billion, the report shows.

"The enterprise router market had a weak quarter, driven by declines in the North American and EMEA regions. The market continues to do well in the Asia Pacific region. We haven't witnessed any weakness in the other enterprise equipment markets that we track, so for now we assume the stall in the router market is an anomaly, and not a turning point. The WAN optimization appliance market, while it did dip in the 1st quarter after an exceptional 4Q06, is on track for significant growth this year," said Infonetics Research directing analyst Matthias Machowinski.

Market Highlights

--  Worldwide revenue for all categories of enterprise routers -- high-
    end, mid-range, and low-end/SOHO -- was down in 1Q07
--  The worldwide enterprise router market is forecast to reach $4.9
    billion in 2010
--  Cisco continues to lead the total enterprise router market by far,
    with 75% of worldwide revenue share in 1Q07; Juniper moves up to 2nd
    position and the newly combined 3Com/H3C rises to 3rd, and Huawei slips to
    4th
--  North American enterprise router sales were down 17% in 1Q07
--  The average revenue per unit for WAN optimization appliances dropped
    1% in 1Q07 to $8,525
--  Riverbed is the market share leader for worldwide WAN optimization
    appliance revenue in 1Q07
    
The "Enterprise Routers & WAN Optimization Appliances" report tracks WAN optimization appliances and high-end, mid-range, and low-end enterprise routers, and includes port detail (T1/E1/J1, T3/E3/J3, OC3/STM1, OC12/STM4). Forecasts and market share are updated quarterly and cover all regions. Companies tracked include 3Com/H3C, ADTRAN, Cisco, Expand, Huawei, Ipanema, Juniper, Nortel, Packeteer, Riverbed, Siemens, Vanguard, and others.

Download report highlights at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Matthias Machowinski
    Directing Analyst, Enterprise Voice & Data
    Infonetics Research
    781.933.9868
    Email Contact