Cisco losing router sales to HP?

King sees a dip in 2011 while China-embedded rival more than doubles enterprise share

Thanks to a Chinese market that grew 34%, HP more than doubled its enterprise router market share in 2011, according to Infonetics Research. China drove just about the entire enterprise router market in 2011 -- worldwide it grew only 2% from 2010, to $3.5 billion.

HP acquired a significant presence and product line in China with the 2009 acquisition of 3Com.

Cisco's share dropped a couple of points in 2011, but the company still owns nearly 75% of the global market, Infonetics found. The overall market is still down 18% though from pre-recession levels as companies opt for lower cost gear in the mid-range and branch segments.

For the fourth quarter, the enterprise router market is down 3% from a year ago but up 1% from Q3, to $920 million.

In data center equipment -- general purpose, purpose-built, and blade data center Ethernet switches, application delivery controllers, and WAN optimization appliances - 2011 was up 9% over 2010, modest compared to the 59% growth in 2010, according to Infonetics. But the firm expects double-digit growth this year and next.

For the full year, the data center equipment market was $8.4 billion in 2011. It grew 9% sequentially in Q4, to $2.36 billion, and 15% from the same period in 2010.

Cisco remains the overall market leader but the company lost some share in switches, ADCs and WAN optimization in 2011, Infonetics found. HP saw a 38% jump in data center Ethernet switch sales - the company is a leader in blade switches for server racks. F5 extended its leadership in ADCs with a 20% increase in revenue.

Enterprise voice saw Cisco and Avaya solidify leadership. Both have increased share markedly since 2009, at the expense of European and Asian competitors, notes TeleGeography and partner Synergy Research. Cisco's market share increased from 26% in 2009 to 32% in 2011, while Avaya's rose from 12% to 22%. Both have increased combined market share in Asia-Pacific - 22% of the worldwide market -- from 21% to 37% since 2009, the firms say.

The market overall was $2.4 billion in Q4 and $9.6 billion for the full 2011 year. It's been flat the last three years, TeleGeography/Synergy report.

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