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February 26th, 2008

Report: sales of carrier-grade routers and switches up 16% in 2007

Posted by Russell Shaw @ 11:57 am

Categories: Cisco, News, Research

Tags: Router, Sales, Cisco Systems Inc., Routers & Switches, Network Technology, Networking, Russell Shaw

cisco12000.jpg

That’s the carrier-strength Cisco 12000 Series Router and its configuration.

Suitable intro to a new report from Infonetics Research that says that worldwide sales of service provider routers and switches totaled $11.2 billion in 2007, up 16%  from 2006.

The quarterly report is entitled Service Provider Routers and Switches. Reference is made to high bandwidth applications, as well as IP-based networks as key drivers.

In a statement, Infonetics co-founder and principal analyst Michael Howard said:

“The common drivers pushing the carrier router and switch market upward are 1) the ongoing migration to next generation networks based on IP, MPLS, and Ethernet, and 2) growth in consumer broadband,  corporate, IP video, and mobile data traffic. Of course, the traffic jams are being caused by user applications, like music and video downloading, YouTube clips (even corporations are using YouTube for marketing videos), online news, and social networks like MySpace. “

Various stats and other factodia from the report:

  • Cisco’s router and switch sales are up 20% year-over-year, Juniper’s are up 25%;
  • After 11% and 9% sequential jumps in the second and third quarters, the overall market is relatively quiet in the fourth quarter, up 2% sequentially;
  • The 40G market for routers and WDM is on the uptake; 100G is at
    least 2 years out;
  • In 2007, Juniper (pulled) ahead of Alcatel-Lucent to gain the #2  spot in worldwide market share for service provider routers and  switches; Cisco maintains its strong overall lead;
  • Worldwide carrier Ethernet switch (CES) port shipments are up 36% in 2007; Cisco continues to lead by far in this segment, followed  by Huawei and Nokia Siemens.

Russell Shaw is an enterprise computing journalist, analyst and author based in Portland, Oregon. See his full profile and disclosure of his industry affiliations.

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