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Cisco storms back in IP Edge market: Infonetics

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CIOL Bureau
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CALIFORNIA, USA: The global service provider router and switch market, which includes IP edge routers, IP core routers, and carrier Ethernet switches (CES), is down 7.1 pwer cent sequentially to $3.5 billion, following a 14.3 per cent increase the previous quarter. Year-over-year, the carrier router and switch market is up 4.5 per cent, finds market research firm Infonetics Research.

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In its third quarter 2011 (3Q11) Service Provider Routers and Switches vendor market share report, the research firm also finds that In 3Q11, the IP edge segment (IP edge routers and CES), is down 6.7 per cent sequentially but up 4.3 per cent from the year-ago third quarter.

"Of the top five vendors, only Cisco increased its overall carrier router and switch revenue in the third quarter of 2011, up three per cent from the previous quarter to $1.43 billion. Since Alcatel-Lucent, Huawei, Juniper and ZTE all saw double-digit per cent declines in their carrier router and switch revenue in the same period, Cisco rises back up to over 40 per cent market share for the first time this year," notes Michael Howard, principal analyst, carrier networks, Infonetics Research.

The EMEA and Asia Pacific regions each posted six per cent decline, while Central and Latin America (CALA) is the only region that posted an increase, led by Brazil.

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Howard adds: "In the critical IP Edge segment (edge routers and carrier Ethernet switches), which now makes up 79 per cent of the carrier router and switch market, Cisco expanded its lead to 36.2 per cent on the strength of its recently refreshed carrier Ethernet switch portfolio and its ASR 9000. Cisco's share gain is at the expense of its top competitors, particularly Huawei. With Huawei posting the largest sequential drop in IP edge market share in 3Q11, from 17.2 per cent to 12.3 per cent, Cisco's IP edge share now nearly triples Huawei's."

Top vendors posting gains in the IP edge segment in 3Q11 over 2Q11: Alaxala, Cisco, Ericsson, NEC, and Nokia Siemens.

Regionally, North America lead the downward trend in 3Q11 with the largest decline in carrier router and switch revenue (-15 per cent from 2Q11), despite all the concerns about the Euro zone.

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