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  Press Contact:
Matthias Machowinski
Directing Analyst, Enterprise Voice & Data
Infonetics Research
(781) 933-9868
matthias@infonetics.com


10G Ethernet shines during sleepy Q1 switch market

 

BOSTON, Massachusetts, June 5, 2008—Communications market research firm Infonetics Research reports that sales of Ethernet switches decreased 4% sequentially in the 1st quarter of 2008, but are up 9% year-over-year from the 1st quarter of 2007, indicating a healthy overall switch market. The 1st and 4th quarters are typically down quarters for the Ethernet switch market.

Infonetics’ report, Ethernet and Application Switches shows the worldwide Ethernet switch market totaled $4.3 billion in 1Q08, and worldwide revenue is expected to post slow, incremental growth each year through at least 2011.


“Fears of economic uncertainty impacting the switch market aren't panning out so far; while some vendors posted dismal sequential results, much was attributable to seasonality, and other vendors picked up whatever slack was left. At this point, we don't have any solid evidence-based reasons to reduce our outlook for this market,” said Infonetics Research’s Matthias Machowinski, directing analyst for enterprise voice and data.


Other report highlights:

  • Most segments of the Ethernet and application switch market in 1Q08 were flat to down, although most are up on a year-over-year basis
  • 2 emerging segments bucked the downward trend and posted strong double-digit growth in 1Q08: fixed managed layer 3 10G Ethernet ports and 1G Ethernet unmanaged ports
  • Another bright spot in the Ethernet and application switch market in 1Q08 was a general rise in average selling prices (ASPs) for most categories and port speeds
  • Cisco's Ethernet switch revenue was down 1% sequentially in 1Q08, but this was a good performance considering many leading competitors had double digit decreases
  • Worldwide application switch revenue declined 7% in 1Q08 from 4Q07, in-line with expectations; year-over-year, revenue is up 18%


Infonetics’ report tracks application switches and Ethernet switches broken out by fixed configuration (unmanaged vs. managed with a layer 2 vs. layer 3 split), chassis, and PoE by form factor and speed. Market share, which is now shown in flexible pivot tables, and forecasts are updated quarterly and cover all regions. Companies tracked include 3Com/H3C, Adtran, Alcatel-Lucent, Blade, Cisco, Citrix Netscaler, D-Link, Extreme, F5, Force10, Foundry, Huawei, Linksys, NETGEAR, Nortel, ProCurve, Radware, SMC, and others.


Download report highlights from our online portal by logging in above. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.


Infonetics Research (www.infonetics.com) is an international communications market research firm. Tracking emerging markets since 1990, Infonetics covers a broad range of service provider, product manufacturer, and enterprise and SMB markets, including network security, enterprise routers and switches, enterprise voice, unified communications, broadband networks, IPTV, IP video, mobile TV, optical networks, metro Ethernet, carrier routing and switching, wireless, FMC, VoIP, IMS, policy management, subscriber management, service management, carrier capex and opex, and more. Services include quarterly market share and forecasting, end-user survey research, service provider survey research, service provider capex analysis, and custom research and consulting.

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