Service Provider Router Sales Grew 28% in Q2 2008

RENO, NV--(Marketwire - August 11, 2008) - Synergy Research Group (SRG) announces the availability of the Synergy Q2 2008 Enterprise and Service Provider/Switch Market Share report.

In Q2 2008, Service Provider investment continued to drive the overall Router market. Service Provider Router sales posted its third double-digit growth in the last five quarters. While the increasing demands of multimedia network traffic such as video are contributing to Router sales, Synergy believes managed services are also becoming a strong growth driver.

Worldwide, businesses are turning to service providers for managed services as a cost-effective alternative to maintaining and running their own networks. Synergy believes as organizations continue to operate under challenging economic conditions, the trend to outsource network services to Service Providers will continue to increase.

For service providers to address this opportunity they will need to offer competitively priced services that provide a flexible access aggregation architecture and an efficient operation to the Enterprise. This will require Service Providers to increase their Router investment, especially at the edge of their networks.

The Router/Switch manufacturers that benefited most from Service Provider investment in the quarter included Nortel, Tellabs, Cisco, Extreme, Juniper, and Alcatel-Lucent.

Service Provider Router/Switch Vendor Sales Growth
                                   Y-Y        Q-Q
Nortel                            37.4%      36.2%
Tellabs                           15.7%      22.4%
Cisco                             30.4%      13.2%
Extreme                           75.9%      11.2%
Juniper                           44.7%       7.2%
Alcatel-Lucent                     6.2%       6.7%
ER/Redback                         9.0%       0.5%
Foundry                           29.7%      -0.3%
                    Source: Synergy Research Group

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About Synergy Research Group

Synergy Research Group (www.srgresearch.com) is a market research leader providing quarterly market share, analysis, and forecasting services to the Telecom, Mobile and Networking Industries.

For more information about Synergy's quarterly reports and research services, log on to www.srgresearch.com or contact Heather Gallo at hgallo@srgresearch.com or 775-852-3330.

Contact Information: Synergy Contact: Heather Gallo Business Development Manager Synergy Research Group +1 775-852-3330 ex 101