Switchback
Cisco retaking core router share from Juniper.
 
|
|||
 | |||
|
Cisco continues to steal back router market share from Juniper according to data from two market researchers and a Wall Street investment firm.
Cisco gained core router revenue market share for the third consecutive quarter in the fourth quarter of 2001, according to Infonetics Research. The company attained 79% of the market in that quarter even though revenues decreased by 20%, the firm found.
Dell'Oro Group, meanwhile, says Cisco gained five share points back from Juniper in the fourth quarter.
Juniper experienced a "dismal" fourth quarter, with 19% of the core router market, although their revenue market share for 2001 overall remains at 26%, the same as it was in 2000, according to Infonetics. Juniper`s fourth quarter total router sales were down 25% sequentially, according to investment firm UBS Warburg.
Avici captured 2% of the core router revenue market share in the fourth quarter but revenue was down 11%.
Between third and fourth quarter, worldwide core router revenue decreased 22% and worldwide port shipments decreased 15%, Infonetics found. But Dell'Oro results showed that total core router sales declined 18% sequentially from $569 million in the third quarter to $466 million in the fourth quarter.
For the entirety of 2001, Cisco captured 72% and Juniper 26% of the $2.4 billion worldwide market for service provider core routers, Infonetics found. The total market was down 4% from 2000, according to the firm.
Cisco's newer and OC192-capable 12400 series revenue is 45% of its core router revenue, Infonetics found. Meanwhile, the firm expects Juniper's next core router to be available in the second or third quarter this year.
UBS Warburg says the core router market will remain challenging in 2002, especially in the first quarter of 2002. But the edge is a different story.
Cisco and Juniper are experiencing gains in the edge. In the fourth quarter, Dell'Orodata indicates that the edge router segment grew 29% sequentially from $413.6 million in the third quarter to $534.5 million in the fourth quarter.
Cisco showed a 32% increase in sales from $334.1 million in the third quarter to $439.7 million in the fourth quarter. Juniper showed a 30% increase in edge router sales from $19.6 million in the third quarter to $25.5 million in the fourth quarter.
Cisco and Juniper are investing heavily in R&D and positioning in edge routers as service providers continue to invest in these devices with hopes of increasing revenues by offering more network-based services to their customers, Infonetics says. UBS Warburg is expecting regional Bell operating company activity in the second half of this year to provide potential growth in edge router sales for players in this market.
RELATED LINKS
Core can wait
The Edge, 02/11/02
Juniper's next-gen revealed?
The Edge, 10/25/01
Metro is the core of Cisco's apple
The Edge, 02/04/02
