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  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


Carrier switch and router market bounces off the bottom with a 7% gain in 2Q09

 

Campbell, CALIFORNIA, August 20, 2009—Market research firm Infonetics Research released its second quarter (2Q09) 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.


REPORT HIGHLIGHTS

  • 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
  • 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
  • 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
  • Cisco increased its worldwide IP edge router revenue share by 1.5 percentage points in 2Q09
  • 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’ 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


MORE INFORMATION

Log on or join: http://www.infonetics.com/login

From the portal, go to RESEARCH, then CARRIER ROUTING, SWITCHING, AND ETHERNET.


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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.


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"Service providers increased their investments in edge and core routers in 2Q09, showing 13% edge and 4% core upticks."

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