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Ethernet Extender - Ethernet, Enterprise Router Market Braced For Strong Rebound: Report
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May 20, 2010

Ethernet, Enterprise Router Market Braced For Strong Rebound: Report

By Madhubanti Rudra
TMCnet Contributor


 

Ethernet switches and routers are the two building blocks of huge enterprise networking market. And Infonetics Research's latest findings about Ethernet Switches and Enterprise Routers markets brings about good news for the industry as a whole.


The research firm released two reports with new first quarter (Q1 2010) data and vendor market share and gave detailed account of the performance of the two markets over the last quarter of the past year and the first quarter of the current year.

"The Ethernet switch market continues to rebound from the low-points set during the recession," said Matthias Machowinski, who is the directing analyst for enterprise voice and data at Infonetics (News - Alert) Research has noted in the report.

The reasons for the growth are multi-fold: an improving economy, pent-up demand, and a reduction in back-log due to supply chain constraints in late 2009And although Cisco (News - Alert) is under attack from all sides, they emerge the clear winner in 1Q10, growing their Ethernet switching revenue about 17 percent, while all other vendors combined grew 1 percent."

The Ethernet switch market struggled through the first part of 2009 but the rebound process started right from the 4Q09. The Infonetics research revealed that the Ethernet market has made straight 15 percent revenue gain in 4Q09. The upward growth continued with the market showing strong rebound in Q1 2010, up 12 percent to $4.6 billion.

Compared on a year-over-year basis, Ethernet switch manufacturer revenue showed a 41 percent jump in  Q1 2010 from its recession-induced low in Q1 2009.

The report also cited the revenues of the key players in the market.

According to the Infonetics report, Ciscoincreased its Ethernet switching revenue 16.5 percent in Q1 2010, after an even bigger jump in revenue in Q4 2009, pushing its overall revenue market share to the highest it has been in years (72.3 percent).

the report said that Extreme also showed strong gains in the Ethernet switch market in 1Q10, while many vendors were flat or down for the quarter.

Newly combined HP and 3Com/H3Care now the #2 vendor by a wide margin, with 20 percent port and 10 percent revenue share; the next closest vendor, in terms of revenue, is Avaya (News - Alert) with 2 percent.

The report also pointed out that Avaya is back in Ethernet switching via its acquisition of Nortel's (News - Alert) enterprise assets  

The findings about enterprise routers market is as follows:

According to the research firm, worldwide revenue from high-end, mid-range, branch office, and low-end/SOHO enterprise routers held steady in 1Q10, down half a percent to $818 million, on the heels of a 10 percent increase the previous quarter.

The report also said that the overall enterprise router market is up 4.5 percent year-over-year, 1Q09 to 1Q10.

Cisco posted a flat quarter in enterprise routers, balancing out a decrease in mid-range router sales with significant increases in high-end and low-end/SOHO router sales.


Madhubanti Rudra is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Marisa Torrieri
 

 
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