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Ethernet switching, router markets up in 3Q10

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CIOL Bureau
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BOSTON, USA: Ethernet switch sales grew three percent in 3Q10 over 2Q10 to $4.7 billion, reaching a new quarterly high, surpassing the previous 3Q08 high of $4.68 billion, right before the economic downturn, says Infonetics Research.

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Moreover, worldwide revenue from enterprise routers is up 15 percent year-over-year (3Q10 over 3Q09), and up nine percent quarter-over-quarter (3Q10 over 2Q10).

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Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, sid: "Despite the murky economic picture, 2010 is shaping up to be a great year for Ethernet switching, with sales for the year likely reaching the highest level ever, at $18.5 billion, up 29 percent from 2009."

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Strength in 3Q10 came from North America and EMEA, which were up quarter-over-quarter and up strongly year-over-year (from 3Q09)

"Also, we're finally seeing the enterprise router market come to life, driven by strong results in North America, China, and Japan. Under-investments in 2009 are taking a toll and driving sales to new heights," notes Machowinski.

Ethernet switch sales jumped 30 percent in Japan and up 11 percent in China in 3Q10.

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Chassis and fixed managed layer 3 switches fared best in 3Q10, continuing a reversal from 2009 trends, when buyers sought value in low-end switching.

Ethernet switch revenue of behemoth Cisco was up two percent, after a small dip the previous quarter, and is up 36 percent year-over-year.

Cisco accounts for 92 percent of the sequential quarterly increase in enterprise router sales in 3Q10, as its new G2 platform gains market acceptance.

Enterprise router units are shipping in increasing numbers across all router segments (high-end, mid-range, branch office, and low-end/SOHO).

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