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Worldwide service provider router and switch revenue reached $1.8 billion in the first half of 2005, up 10 percent from the first quarter, and up 24 percent year over year. This comes from Infonetics Research's just-released quarterly report, Service Provider Routers and Switches. The research firm predicts that worldwide annual revenue will reach $8.9 billion by 2008.
Cisco leads the pack in worldwide edge router revenue with 56%, followed by Juniper (21%) and Huawei (9%). Huaweis sales reportedly more than doubled in the most recent quarter.
While all equipment categories gained, IP routers led the overall growth.
According to Kevin Mitchell, principal analyst at Infonetics Research, "IP edge routers will play a huge role in the drive for data network convergence, in many cases acting as the gateway to the MPLS core for layer 2 data access connections. The newest generation routers will be required, driving 12% to 20% growth rates in IP routers from 2005 to 2008. The multi-service convergence application will be the fastest growing segment."
Other highlights from the report include:
- IP edge router revenue totaled $820.6 million, up 13% sequentially and 31% annually.
- Standard IP edge applications (routing, IP VPNs, wireless backhaul, etc.) make up the majority of IP edge router revenue with 57%.
- BRAS applications make up 29% of IP edge router revenue.
- Multiservice convergence revenue grew to $110.7 million, making up 14% of IP edge router revenue.
Greg Galitzine is editorial director for INTERNET TELEPHONY magazine.
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