SOURCE: Infonetics Research

Infonetics Research

May 19, 2010 14:21 ET

Infonetics Research: Ethernet switch market nears pre-recession highs; enterprise router recovery taking shape

BOSTON, MA--(Marketwire - May 19, 2010) -  Market research firm Infonetics Research (http://twitter.com/infonetics) released two enterprise networking market reports with first quarter (1Q10) data and vendor market share: Ethernet Switches and Enterprise Routers.

ANALYST NOTE
"The Ethernet switch market continues to rebound from the low-points set during the recession. The reasons for the growth are multi-fold: an improving economy, pent-up demand, and a reduction in back-log due to supply chain constraints in late 2009," notes Matthias Machowinski, Infonetics Research's directing analyst for enterprise voice and data. "And although Cisco is under attack from all sides, they emerge the clear winner in 1Q10, growing their Ethernet switching revenue about 17%, while all other vendors combined grew 1%."

ETHERNET SWITCHES

  • Following a 15% revenue gain in the Ethernet switch market in 4Q09, the market posted another strong rebound in 1Q10, up 12% to $4.6 billion
    • On a year-over-year basis, Ethernet switch manufacturer revenue is up 41% in 1Q10 from its recession-induced low in 1Q09
  • Cisco increased its Ethernet switching revenue 16.5% in 1Q10, after an even bigger jump in revenue in 4Q09, pushing its overall revenue market share to the highest it has been in years (72.3%)
  • Extreme also posted strong gains in the Ethernet switch market in 1Q10, while many vendors were flat or down for the quarter
  • Newly combined HP and 3Com/H3C are now the #2 vendor by a wide margin, with 20% port and 10% revenue share; the next closest vendor is Avaya, with 2% revenue
    • Avaya is back in Ethernet switching via its acquisition of Nortel's enterprise assets

ENTERPRISE ROUTERS

  • Worldwide revenue from high-end, mid-range, branch office, and low-end/SOHO enterprise routers held steady in 1Q10, down half a percent to $818 million, on the heels of a 10% increase the previous quarter
  • The overall enterprise router market is up 4.5% year-over-year, 1Q09 to 1Q10
  • Cisco posted a flat quarter in enterprise routers, balancing out a decrease in mid-range router sales with significant increases in high-end and low-end/SOHO router sales

REPORT SYNOPSES
Infonetics' Ethernet switch report tracks 3Com/H3C, Adtran, Alcatel-Lucent, Arista, Avaya, Blade, Brocade, Cisco, D-Link, Enterasys, Extreme, Force10, HP ProCurve, Huawei, Juniper, Linksys, NETGEAR, SMC, and others. The report provides market size, market share, forecasts, and analysis for fixed configuration and chassis Ethernet switches by form factor and speed (100M and 1G PoE switches and 100M, 1G, and 10G Ethernet switches). Fixed Ethernet switches are tracked by layer (layer 2, layer 3) and management (managed, unmanaged, web-managed).

Infonetics' enterprise router report tracks 3Com, ADTRAN, Avaya, Cisco, Huawei, Juniper, OneAccess, and others. The report provides worldwide and regional market size, market share, analysis, and forecasts for high-end, mid-range, branch, and low-end/SOHO routers, including port detail (T1/E1/J1, T3/E3/J3, OC3/STM1, OC12/STM4 and other ports).

RELATED RESEARCH
See ENTERPRISE NETWORKING on Infonetics' portal (http://www.infonetics.com/login), or follow the links below for report highlights or additional information:

SALES

Infonetics Research 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

Multimedia