Growth in Enterprise Router Market Will Be Fueled by VoIP and Security
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[August 31, 2004]

Growth in Enterprise Router Market Will Be Fueled by VoIP and Security

SAN JOSE, Calif., Aug. 31 /PRNewswire/ -- Worldwide enterprise router revenue dropped 10% between 1Q04 and 2Q04, after an 8% increase between 4Q03 and 1Q04, according to Infonetics Research's Enterprise Routers quarterly worldwide market share and forecast report. By 2007, annual revenue is expected to increase to the 2003 level of $4 billion.


"The traditional enterprise router market is evolving into an IP-centric market where enterprise routers are supporting VoIP in addition to security features," said Jeff Wilson, principal analyst of Infonetics Research. "This trend is reflected in the stabilizing and increasing revenue forecast from 2004 to 2007, particularly in the secure mid-range and low-end segments. Enterasys and Vanguard are examples of vendors beside Cisco and Nortel offering integrated voice and security, and Juniper will likely follow suit."
2Q04 Market Share Highlights

-- Cisco maintains its strong lead in the total enterprise router market,
despite a down quarter, accounting for more than three-quarters of the
worldwide revenue share and over a fifth of the unit market share
-- Linksys and D-Link tie for the lead in unit market share, each with
over a quarter; Linksys is second for revenue market share, well behind
Cisco, followed by D-Link (although Linksys is now owned by Cisco,
numbers are reported separately)
-- NETGEAR is in fourth place for worldwide unit shipments
-- High-end routers make up 49% of total enterprise router revenue,
mid-range routers make up 39%, wired broadband gateways make up 9%, and
low-end/SOHO routers make up 3%
-- 46% of all enterprise router revenue comes from North America, close to
a third comes from EMEA, less than a fifth from Asia Pacific, and the
remainder from CALA
-- The geographic mix shifted back to where it had been prior to 1Q04,
with North America experiencing high revenue growth and EMEA
experiencing revenue declines; there is typically a three- to six-month
lag in demand from North America to EMEA




Enterprise Routers tracks wired broadband gateways and standard and secure high-end, mid-range, and low-end/SOHO routers. Forecasts and market share are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA).
Companies tracked in this service include 3Com, ADTRAN, Allied Telesyn, Cisco, D-Link, Enterasys, Huawei, Juniper, Linksys, Lucent, NETGEAR, Nortel, Siemens, Tasman, Vanguard, and others.
For the table of contents, log on to Infonetics Research's Information Portal and download it at http://www.info.infonetics.com/ or contact Larry Howard, vice president, at larry@infonetics.com, 916-933-3543.
Infonetics Research (http://www.infonetics.com/) is an international market research and consulting firm covering the data networking and telecommunications industries in North America, Europe, and Asia. Infonetics helps companies develop, market, and sell products and services by providing objective analysis of end-users, service providers, and product manufacturers. Infonetics has offices in Silicon Valley, the Boston Metro Area, and London.
Infonetics Research


CONTACT: Jeff Wilson, Principal Analyst of Infonetics Research,+1-408-298-7999, ext. 226, or jeff@infonetics.com


Web site: http://www.infonetics.com/

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