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Global service provider router, switch revenue down 17 pc

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Deepa
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BANGALORE, INDIA: Pushed lower by weakness in Europe, global service provider router and switch revenue declined 17 per cent in 1Q13 from 4Q12, and is down six per cent from the year-ago quarter (1Q12). North America was the only geographic region to buck the usually down Q1, posting a seven per cent sequential gain, finds market research firm Infonetics Research.

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"The first quarter is normally down for routers and carrier Ethernet switches, so it is better to look at the longer-term trends," explains Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. "The main growth drivers - the transition from TDM to packet and rising video traffic - are still in effect, the US economy is slowly improving, and a number of large operators in the Euro zone intend to spend."

"Given these factors," Howard adds, "We expect the router and CES market to grow at an 8.8 per cent CAGR through 2017."

EMEA (Europe, the Middle East, and Africa), Asia Pacific, and CALA (Caribbean and Latin America) all declined by double digits in 1Q13. Cisco maintains its strong hold on the #1 spot in the overall carrier router and switch market with 39 per cent revenue share in 1Q13. Meanwhile, the fight for the next three positions in the carrier router and switch market remains tight, with less than one percentage point separating Alcatel-Lucent, Huawei, and Juniper. Alcatel-Lucent edged ahead of Huawei for second place in 1Q13.

Private router company Compass-EOS recently announced NTT as a customer for its new core router that provides terabit-per-second connectivity to facilitate software-defined networking (SDN) and network function virtualization (NFV).

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