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BOSTON, Massachusetts, June 5, 2007—After a 31% increase in the 4th quarter, the burgeoning WAN optimization market dipped 4% to $106 million worldwide in the 1st quarter of 2007, but is up 61% from a year ago, according to Infonetics Research’s latest Enterprise Routers & WAN Optimization Appliances report.
Infonetics predicts strong double-digit annual growth in the worldwide WAN optimization market through 2010, when it will reach $652 million.
Meanwhile, the enterprise router market took an unexpected downward turn in the first quarter of 2007, with worldwide revenue dropping 6% to $1 billion, the report shows.
“Users are demanding single number/single device services, and operators like T-Mobile announced converged services based on Unlicensed Mobile Access (UMA) in 2006,” said Richard Webb, directing analyst for wireless at Infonetics Research. “UMA is a good example of early fixed-mobile convergence (FMC), prior to the eventual shift to IMS in the long-term.”
“The enterprise router market had a weak quarter, driven by declines in the North American and EMEA regions. The market continues to do well in the Asia Pacific region. We haven’t witnessed any weakness in the other enterprise equipment markets that we track, so f or now we assume the stall in the router market is an anomaly, and not a turning point. The WAN optimization appliance market, while it did dip in the 1st quarter after an exceptional 4Q06, is on track for significant growth this year, ” said Infonetics Research directing analyst Matthias Machowinski.
Market Highlights
- Worldwide revenue for all categories of enterprise routers—high-end, mid-range, and low-end/SOHO—was down in 1Q07
- The worldwide enterprise router market is forecast to reach $4.9 billion in 2010
- Cisco continues to lead the total enterprise router market by far, with 75% of worldwide revenue share in 1Q07; Juniper moves up to 2nd position and the newly combined 3Com/H3C rises to 3rd, and Huawei slips to 4th
- North American enterprise router sales were down 17% in 1Q07
- The average revenue per unit for WAN optimization appliances dropped 1% in 1Q07 to $8,525
- Riverbed is the market share leader for worldwide WAN optimization appliance revenue in 1Q07
The Enterprise Routers & WAN Optimization Appliances report tracks WAN optimization appliances and high-end, mid-range, and low-end enterprise routers, and includes port detail (T1/E1/J1, T3/E3/J3, OC3/STM1, OC12/STM4). Forecasts and market share are updated quarterly and cover all regions. Companies tracked include 3Com/H3C, ADTRAN, Cisco, Expand, Huawei, Ipanema, Juniper, Nortel, Packeteer, Riverbed, Siemens, Vanguard, and others.
Download report highlights at www.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.
Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research and capex analysis.
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