Router, Ethernet switch markets to rebound

BOSTON, USA: Worldwide enterprise router revenue edged higher in 3Q09, up five percent sequentially to $746 million. Moreover, Ethernet switch market grew five percent sequentially to $3.5 billion.

This is according to market research firm Infonetics Research released two third quarter (3Q09) reports recently, Ethernet Switches and Application Delivery Controllers and Enterprise Routers and WAN Optimization Appliances.

Ethernet IP MPLS VPN services to grow

Matthias Machowinski, directing analyst, enterprise voice and data, Infonetics Research, said: "Ethernet switch sales grew for the second quarter in a row, indicating that the market reached the bottom in the first half of 2009. Sales were supported by a general stabilization in the business climate, coupled with public sector spending and stimulus programs in Asia Pacific and North America."

"Enterprise router sales also grew in the third quarter, but overall have suffered more than other segments, as businesses aren't opening new locations, and are substituting with cheaper devices. Cisco's introduction of the next generation ISR should help support router sales going forward, as buyers look to upgrade their aging installed base," he expects.

Ethernet Switch Market Highlights

Growth was strongest toward the low end, with unmanaged and web-managed switches both showing double-digit sequential growth.

10G ports jumped 46 percent and are up 61 percent year-over-year.

Most of the top Ethernet switch vendors posted single- to double-digit percent revenue gains in 3Q09.

HP ProCurve is slated to acquire 3Com, which would create the largest competitor to Cisco

Application delivery controller (ADC) revenue jumped 10 percent in 3Q09, to $229 million worldwide.

Enterprise Router Market Highlights

Router sales are beginning to stabilize in North America and Asia Pacific, with sales up sequentially from 2Q09, and down the least of all regions year-over-year.

Heavyweight Cisco increased sales by seven percent in 3Q09, and captures about three-quarters of router revenue

ADTRAN had the highest rebound, with sales up 18 percent sequentially.

After shrinking for several quarters, the WAN optimization market rebounded, growing 12 percent sequentially, led by positive results by the three main vendors, Blue Coat, Cisco, and Riverbed.