Revenue up 29% from last year; Alcatel-Lucent switches No. 2 places with Juniper again.
The service provider edge router market just completed a record quarter in Q3, according to Dell’Oro Group. It’s up 25% from Q3 of 2009, surpassing $1.5 billion in worldwide revenue – a record level, according to the firm.
Cisco improved its market share lead in the quarter, while Alcatel-Lucent overtook Juniper Networks for the second position. Huawei leapt ahead of Tellabs to take the No. 4 position, according to Dell’Oro.
Cisco’s share was 46% in the quarter, with revenue up 29% from last year. Alcatel-Lucent’s share was 21%, with a 26% bump in revenue. Juniper’s share was just under 19%, with revenue up 23% from Q3 2009.
Huawei’s revenue was up 44% from last year, while Tellabs saw a 22% spike.
Ericsson, which announced its Redback acquisition four years ago, saw revenue jump 51% from Q2 but drop 29% from a year ago. The sequential jump, according to Dell’Oro, was due to one customer distributing its B-RAS architecture, which required more Redback routers in more locations.
Redback did $70 million in edge router revenue in the third quarter of 2006, just before Ericsson announced its $2.1 billion acquisition. Back then, Redback was No. 4 behind Cisco, Juniper and Alcatel-Lucent. It did $46 million in this Q3, which was up from $23.5 million in Q2, according to Dell’Oro. Clearly, Ericsson hasn’t been a growth engine for Redback.
Demand for edge routers in Q3 picked up significantly for mobile backhaul applications, according to Dell’Oro Vice President Shin Umeda. Wireless service providers need IP/MPLS routers at the edge to increase network capacity for high-speed data services and growth of mobile data traffic.
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