SOURCE: Infonetics Research

December 16, 2008 20:48 ET

Infonetics Research: Enterprise router and WAN optimization markets flat in 3Q08

BOSTON, MA--(Marketwire - December 16, 2008) - Communications market research firm Infonetics Research reports worldwide sales of enterprise routers hit $1.08 billion in 3Q08, down 1% from the previous quarter, while sales of WAN optimization appliances are up 1%.

Infonetics' report, Enterprise Routers and WAN Optimization Appliances, shows that while the WAN optimization market is expected to grow a healthy 30% in 2008 from 2007, growth is being stunted by the quickly deteriorating economic situation.

"We have been expecting WAN optimization market growth to slow a bit, as is natural for fast growing early markets, but the global economic crisis is exacerbating the slowdown. Quarterly year-over-year revenue growth has been steadily shrinking, and the fourth quarter outlook provided by Blue Coat and Riverbed is mixed. The WAN optimization market is still expected to pass the $1 billion mark this year and grow annually during the downturn, just not as quickly as previously forecast," said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

Other highlights from the report:

--  Spending on enterprise routers is forecast to decline in 2009 and
    bottom out in 2010, with growth returning in 2011
--  39% of 3Q08 enterprise router revenue came from North America, 33%
    from EMEA, 22% from Asia Pacific, 7% from CALA; emerging economies in Asia
    are expected to hold up better during the downturn
--  Cisco continues to lead the worldwide enterprise router market by far,
    with 85% of worldwide revenue in 3Q08; Juniper is 2nd for revenue, Huawei
    is 3rd
--  Blue Coat moves into first place in WAN optimization appliance revenue
    share with its acquisition of Packeteer; Cisco is a close second; Riverbed
    is third
    

Infonetics' report tracks 3Com/H3C, ADTRAN, Allot, Blue Coat, Cisco, Huawei, Ipanema, Juniper, Nortel, OneAccess, Packeteer, Riverbed, Siemens, and others. The quarterly report features pivot tables and provides market size, market share, forecasts, and analysis for WAN optimization appliances and high-end, mid-range, branch, and low-end/SOHO enterprise routers, including port detail (T1/E1/J1, T3/E3/J3, OC3/STM1, OC12/STM4).

For report highlights, log in to Infonetics' online portal from www.infonetics.com (see Enterprise Data). 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 serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.

Contact Information

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