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





Cisco continues to lose share in IP edge market; overall carrier router and switch market up 14%

 

Campbell, CALIFORNIA, August 26, 2011—Market research firm Infonetics Research today released excerpts from its second quarter 2011 (2Q11) Service Provider Routers and Switches vendor market share report, which tracks IP edge routers, IP core routers, carrier Ethernet switches (CES), and multiservice ATM switches.


ANALYST NOTE

"Alcatel-Lucent, Huawei, Juniper and even ZTE continue to take market share from Cisco in the critical IP edge segment (the sum of IP edge routers and carrier Ethernet switches). Cisco is actually doing really well, with global IP edge revenue up 12% in the second quarter of 2011, and still commands close to a third of the worldwide market. The problem is that Cisco's competitors are growing faster: Huawei's IP edge revenue grew 66% and Alcatel-Lucent's 22% in 2Q11. Over the last year and a half (1Q10 to 2Q11), Cisco's IP edge revenue share declined from a high of 41.5% to 32.2%, while its closest competitors gained between 2 and 5 percentage points of share," notes Michael Howard, principal analyst for carrier networks at Infonetics Research.


Howard adds, "Alcatel-Lucent and Huawei have end-to-end portfolio solutions for broadband and mobile networks, and, according to our surveys, many service providers see Juniper and ALU as offering competitive technology at a better price point. Meanwhile, ZTE is growing in the mobile space, particularly mobile backhaul. For these and other reasons, these manufacturers are winning big deals in the IP edge space and gaining on Cisco."


SERVICE PROVIDER ROUTER AND SWITCHES MARKET HIGHLIGHTS

  • The total service provider router and switch market is up 14% sequentially to $3.8 billion worldwide
  • Year-over-year, the carrier router and switch market is up 19%
  • In 2Q11, the IP edge segment (IP edge routers and carrier Ethernet switches) jumped 15% sequentially and 21% year-over-year (from 2Q10), now making up 78% of the total market
  • Asia Pacific and North America contributed most of the overall market's lift in 2Q11; CALA (Central and Latin America) was up slightly and EMEA (Europe, Middle East, Africa) contracted a bit

REPORT SYNOPSIS

Infonetics' quarterly Service Provider Routers and Switches report tracks Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Ericsson, Extreme, Force10, Fujitsu, Hitachi Cable, Huawei, Juniper, NEC, Nokia Siemens, Orckit-Corrigent, Tellabs, ZTE, and others. The report provides worldwide and regional market share, market size, and analysis for IP edge routers, IP core routers, carrier Ethernet switches (CES), and multiservice ATM switches.


CLIENT CONFERENCE CALL

Log in to Infonetics' portal and go to this report's “Conference Call for Clients” to join Michael Howard's Service Provider Routers and Switches telebriefing Wed., Sept. 7, 8:30 a.m. PT.


SALES


For related and upcoming research, see CARRIER ROUTING, SWITCHING, AND ETHERNET on Infonetics' portal (http://www.infonetics.com/login), or follow the links below for more information.


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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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"Over the last year and a half, Cisco's IP edge revenue share declined from a high of 41.5% to 32.2%, while its closest competitors gained 2 to 5 percentage points."

Michael Howard
Principal Analyst, Carrier Networks

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