Second consecutive quarter of growth in Q3, according to Infonetics
Sales of Ethernet switches grew for the second quarter in a row, according to Infonetics Research, an indication that the market is coming off the bottom of the recession.
The Ethernet switch market grew 5% sequentially in the third quarter, to $3.5 billion, Infonetics found. Stabilization in spending from businesses, as well as public sector spending and stimulus programs in Asia Pacific and North America were factors in the quarter.
Sales of 10G ports jumped 46% and are up 61% from last year, according to the firm. Most of the top Ethernet switch vendors posted single- to double-digit percent revenue gains in the quarter.
Enterprise router sales also grew in the third quarter but have previously languished due to businesses deploying cheaper products or not opening new branch offices. The market may also have been frozen while waiting for Cisco’s new ISR G2 routers — after all, Cisco owns 80+% of the enterprise router market.
So router sales are expected to pick up in the coming quarters as ISR customers refresh their networks, according to Infonetics analyst Matthias Machowinski.
In Q3, meanwhile, worldwide enterprise router revenue was up 5% sequentially to $746 million. Cisco increased sales by 7% in the quarter, but Adtran was up 18% from Q2, Infonetics reports.
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