: Search: Contact
About Us Research Services News & Events Analysts Login
E-mail
Password
Save my password.

  Press Contact:
Michael Howard
Co-founder and Principal Analyst
Carrier and Data Center Networks
Infonetics Research
(408) 583-3351
michael@infonetics.com
twitter: michaelvhoward
twitter: infonetics


Cautious carriers pull back on router and switch spending

 

Campbell, CALIFORNIA, May 28, 2009—Market research firm Infonetics Research released the first quarter edition of its Service Provider Routers and Switches report, which tracks IP core and edge routers, carrier Ethernet switches (CES), and multiservice ATM switches.

Highlights from the market research report follow, and clients are invited to participate in an analyst-led telebriefing summarizing results (see https://infonetics.webex.com for times).


ANALYST NOTE

“In the fourth quarter of 2008, we saw the start of carrier cautiousness with year-over-year growth for the service provider router and switch market up only 4%. Now in the first quarter of 2009, the market is down 13% year-over-year, indicating the full effect of operator protective behavior in the thick of the downturn. While the first quarter of every year is typically a down one for the carrier router and switch market, 1Q09 showed the deepest sequential decline in years. On the up side, if carriers keep to their capital expenditure guidance given for 2009, spending will have to pick up in the second half of the year. With Internet and data traffic growing unabated, service providers are going to have to upgrade their equipment to keep up, or risk losing customers.”


Michael Howard, Principal Analyst, Carrier and Data Center Networks, Infonetics Research


MARKET RESEARCH REPORT HIGHLIGHTS

  • As expected, worldwide sales of service provider routers and switches (IP core and edge routers, carrier Ethernet switches, multiservice ATM switches) were down in 1Q09:
    • Down 17% sequentially
    • Down 13% year-over-year
  • Asia Pacific was the only major world region with increased spending on service provider routers and switches in 1Q09 (up 3% sequentially and up 11% year-over-year)
  • Aggressive competition in the IP core and edge router segments is changing the market leaderboard; Cisco is still the big gorilla, of course, but Alcatel-Lucent, Huawei, and Redback are all growing their router revenue share
  • Although the quarter was down, the main driver for the carrier switch and router market are the same and at play in all regions:
    • Carriers are transforming their networks from TDM to packet IP to handle the fast growing Internet, mobile, data, broadband, and video traffic


REPORT SYNOPSIS

Infonetics’ service provider router and switch report provides vendor market share for Alcatel-Lucent, Ciena, Cisco, ECI, 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, port details, and analysis for IP core and edge routers, carrier Ethernet switches (CES), 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).


DOWNLOAD OR BUY THIS REPORT

If you're already a member of the Infonetics online portal, log in at http://www.infonetics.com/login

Or create a new account here: http://www.infonetics.com/cgp/newaccounts.asp


Once on the portal, go to Download Research or Download Sales Lit, then select CARRIER ROUTING, SWITCHING, AND ETHERNET.


For sales, please contact:


Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete more effectively.


Infonetics is now on Twitter; follow us at http://twitter.com/infonetics.


Join Infonetics’ online research portal to access free content and more at: http://www.infonetics.com/cgp/newaccounts.asp


# # #

"Aggressive competition in the IP core and edge router segments is changing the market leaderboard."

Michael Howard
Principal Analyst, Infonetics Research
Service Provider Routers and Switches