There’s healthy growth to be had in service provider routers and switches, according to third-quarter data from three market research firms.
There’s healthy growth to be had in service provider routers and switches, according to third-quarter data from three market research firms.
The market for routers and switches combined grew 11% from the second quarter and 28% from the third quarter of 2003, according to Infonetics Research. The total market was $1.6 billion in 2004 the third quarter, according to the firm, which expects it to grow to $8.4 billion in 2007, a 15% compound annual growth rate.
Sales of service provider core and edge routers grew 11% sequentially, to $983 million, according to Synergy Research. Cisco’s revenue grew 10% and Juniper’s grew 19%, while No. 3 player Avici’s dropped 78%, from $11.4 million to $2.5 million, the firm found.
Avici just ousted its CEO following its dreadful third quarter.
Avici’s share of the market dropped from 1.3% to .3%, while Cisco eased down to 64.6% from 65.2%. Juniper gained almost two points in share, moving from 24.8% to 26.6%, Synergy found.
Sales of high-end routers — 10G bit/sec and above — grew 33% in Q3 to $347 million, according to Dell’Oro Group. Cisco’s revenue grew, 25% while Juniper’s leaped 57%, an indication that Juniper’s T640 platform continues to gain traction two years after shipping, while Cisco customers work to transition from the older GSR to the brand new CRS-1 systems.
Cisco lost two points in core router market share to 58%, while Juniper gained six points to 36% in Q3, according to Infonetics.
Cisco fared better in edge routers. Its share of the $546 million market in Q3 rose from 58.3% to 61.1%, while Juniper’s declined less that 1% — from 25.4% to 24.5%, according to Synergy.
Sales of multiservice switches was up 9% in Q3 and 24% year-over-year, with most of the growth coming from the multiservice edge, according to Infonetics. However, overall router growth continues to outpace multiservice switch increases, the firm found.
