Infonetics Research Report Highlights: Carrier Routing, Switching and Ethernet
Thursday, August 20, 2009
Carrier switch and router market bounces off the bottom with
a 7% gain in 2Q09
Market highlights follow from Infonetics Research's quarterly Service Provider Routers and Switches market share and forecast report, which tracks IP core and edge routers, carrier Ethernet switches (CES), and multiservice ATM switches.
ANALYST NOTE
“Service providers increased their investments in edge and core routers in 2Q09, showing 13% edge and 4% core upticks, which we think will turn into a backend loaded 2009. Of course, we’re not out of the woods yet. Year-over-year the carrier router and switch markets are still down considerably. But the overall bump in the market may indicate a bounce off the bottom, at least for 2009. The main drivers for this market are still there: Carriers continue to transform their networks from TDM to packet IP to handle the fast-growing Internet, mobile, data, broadband, and video traffic," explains Michael Howard, co-founder and principal analyst for carrier and data center networks at Infonetics Research.
SELECT MARKET HIGHLIGHTS
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In 2Q09, service providers spent $2.77 billion worldwide on IP core and edge routers, carrier Ethernet switches, and multiservice ATM switches – a 7% sequential increase
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Worldwide CES revenue decreased slightly in 2Q09, and is still down significantly year-over-year, although it is expected to pick up over the next 4 quarters
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The worldwide multiservice ATM switch market appears to have had its “last hurrah” in the last quarter of 2008, with steady decreases since then and severe year-over-year decreases
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Cisco increased its worldwide IP edge router revenue share by 1.5 percentage points in 2Q09
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Although all the major vendors increased revenue quarter-over-quarter, Alcatel-Lucent, Juniper, Huawei, and Redback all lost share, while Tellabs bumped up 2.3%
REPORT SYNOPSIS
Infonetics’ quarterly service provider router and switch report provides vendor market share for Alcatel-Lucent, Avici, Ciena/Wavesmith, Cisco, Ericsson-Redback, Extreme, Foundry, Fujitsu, Hitachi Cable, Huawei, Juniper, NEC, Nokia Siemens, Nortel, Tellabs, ZTE, and others.
The report provides worldwide and regional market share, market size, forecasts through 2013, and analysis for IP core and edge routers, carrier Ethernet switches, and multiservice ATM switches.
The report also tracks IP edge routers and CES by application (multiservice edge, BRAS, Ethernet access transport, and Ethernet services edge), as well as port count and port revenue for Ethernet (10M/100M, 1G, 10G, 40G, 100G), ATM/frame relay/PPP, POS/ATM/WDM, and others (FDDI, serial, analog, etc.).
CLIENT CONFERENCE CALL
Carriers rank Juniper top in IP edge routers, Cisco top in
carrier Ethernet switches in new survey
Results follow from Infonetics Research's CES and Router Vendor Leadership: Global Service Provider Survey, which polled purchase decision-makers at 27 carriers from EMEA, North America, and Asia Pacific about their familiarity with and perceptions of equipment manufacturers.
In the survey, Infonetics asked service providers to rate carrier Ethernet switch (CES) and IP edge router vendors on 8 criteria: technology, product roadmap, security, management, price-to-performance ratio (value), pricing, financial stability, and service and support.
Service providers rated 6 CES vendors (Alcatel-Lucent, Cisco, Ericsson-Redback, Extreme, Foundry, and Huawei) and 6 router vendors (Alcatel-Lucent, Cisco, Ericsson-Redback, Huawei, Juniper, and Tellabs) on the 8 criteria. In addition, router and switch vendor ZTE was named in several survey responses.
The service providers participating in the survey are a mix of incumbent carriers, competitive operators, MSOs, and wireless operators with cumulative 2008 revenue of $65 billion and capital expenses (capex) of $273 billion, representing 22% of the world’s telecom capex and 16% of the world’s carrier revenue.
ANALYST NOTE
“In our carrier Ethernet switch and IP edge router survey, service providers rated market leader Cisco the highest overall for carrier Ethernet switches, further validating their CES leadership position – although they were beat by the competition in some categories. Juniper is first among IP edge router manufacturers in the survey, with the highest overall rating from service providers. There are a few other nice surprises in the survey; for example, Foundry receives the highest average rating for CES price-to-performance (or value), even above Huawei," notes Michael Howard, co-founder and principal analyst for carrier and data center networks for Infonetics Research.
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