Cisco continued its strong performance in the switch and router space in the first quarter, seeing its revenue jump 33 percent during the same period in 2009, according to Infonetics. The report came a day after IDC noted that Cisco grew its dominating market share in Ethernet switches and routers.
Cisco Systems continues to demonstrate its dominance in the networking
space, with an Infonetics Research report saying the company was the top player
in the switch and router market.
Cisco saw sharp gains in revenues in the space, according to
Infonetics analyst Michael Howard.
"Cisco is on a roll, bumping up their service provider IP core
and edge router revenue by 6 [percent] in the first quarter of 2010 compared to
the previous quarter, and up 33 [percent] compared to the first quarter of 2009,"
Howard said in a statement May 26.
Some smaller vendors, including Tellabs and NEC, also posted
gains in the IP router segment, while a number of other players-in particular,
Alacatel-Lucent, Ericsson and Huawei-saw revenues fall.
"Both Alcatel-Lucent and Ericsson noted supply problems with
components and parts," Howard said.
Overall, worldwide revenue from service provider IP edge
routers, IP core routers, carrier Ethernet switches and multiservice ATM
switches fell 5 percent from the previous quarter, to $2.95 billion, according
to Infonetics. The firm noted that the first quarter is usually a down one for
the market.
However, revenue in the space was up 14 percent over the first
quarter in 2009.
Revenues in the North American carrier router and switch market
grew in the first quarter, up 1.5 percent after gaining 18 percent in the
fourth quarter of 2009.
Compared to this time last year, the service provider switch
and router market in North America is up 29 percent.
Carrier Ethernet switch revenue was up 8 percent from the
previous quarter and 22 percent over the same period last year.
Infonetics wasn't the only market research firm to note Cisco's
growth in the networking space. IDC analysts
on May 25 said Cisco was the key beneficiary of the strong growth in the
Ethernet switch and router space in the first quarter that was fueled in large
part by the rising demand for virtualization, cloud computing, and voice and
video over IP.
Cisco's
market share in Ethernet switches jumped to 68.5 percent-over the 64.5
percent in the first quarter of 2009-and its share of the service provider
Ethernet router space grew from 45.6 percent in the first quarter last year to
52.9 percent in the first three months this year.
Revenues for the fast-growing 10 Gigabit Ethernet switch market
topped $1 billion for the first time, hitting $1.15 billion for the quarter.
Revenues in the Ethernet router market jumped 15.1 percent,
according to IDC.
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