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Enterprise Router Sales Grow in China

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March 22, 2012

Enterprise Router Sales Grow in China

By Ray Deck, TMCnet Contributing Writer


Enterprise router growth is now being driven by the Chinese market, which is mixed news for Cisco, HP, Avaya, Juniper, OneAccess (News - Alert) and others. The overall demand for enterprise routers has risen in the last quarter to sales numbers similar to the pre-recession peak, but buying patterns have shifted away from North American small to medium sized businesses toward the Asian markets where growth is booming.


The result for telecommunications manufacturers is that overall revenue is still down by almost 20 percent. Matthias Machowinski, analyst at Infonetics (News - Alert) Research, explains why saying, “While the high-end of the market remains robust as buyers invest in congested and mission-critical parts of their network, there is significant substitution in the bulk of the market (brand and mid-range routing) with lower cost solutions.”

Enterprise router sales rose 1 percent over the 3rd quarter of 2011 to $920 million this year. That growth was driven almost entirely by China, which saw a 34 percent increase in enterprise router sales from last year. Cisco (News - Alert) still dominates the enterprise router market, but HP is gaining ground quickly. HP more than doubled its market share in 2011 by expanding into the Chinese market.

Infotecnics tracks the enterprise router market on a quarterly basis, reporting on all of the major players. Their quarterly report gives information about the global and regional market breakdowns with data drilling down to categories such as type of router, market size, and port detail. There are also projections included in Infotecnics’ reporting.

There is no sign that the Chinese growth will slow in the next year. Booming industry and commerce throughout Asia continues to be led by China. Sales of enterprise business solutions are often an indicator of a region’s overall market health. It comes as no surprise that all signs point to China’s continued expansion in the world of business.






Edited by Jennifer Russell







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