Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Networking

    Network Switch, Router Market Slows in 3rd Quarter: IDC

    By
    Jeff Burt
    -
    December 3, 2012
    Share
    Facebook
    Twitter
    Linkedin

      The worldwide Ethernet switch market, which had grown in large part due to the adoption of 10 Gigabit Ethernet technology in the data center, contracted in the third quarter, with revenue dropping 4.4 percent, according to analysts with IDC.

      Numbers issued by IDC Nov. 30 indicated that globally, Ethernet switch revenue came in at $5.36 billion, a decrease from what the analysts called a “very strong” third quarter in 2011. The market saw some growth around the world, but was hurt by declines in the United States, the Asia-Pacific region (excluding Japan), and Western Europe, which is still in the grips of a recession.

      “The surprising decline in the Ethernet switch market after several quarters of positive growth is a result of several factors, but the highlight was that the slower growth in the 10GbE core segment of the market could not completely offset the decline in the network edge/access segment,” Rohit Mehra, vice president of network infrastructure at IDC, said in a statement. “10GbE, along with the emerging 40GbE Ethernet switch segments, are the ones to watch as growth in virtualized applications and converged infrastructure will continue to drive the need for advanced networks in data center build-outs.”

      The global router market wasn’t much better, with revenue declining 0.2 percent, with demand falling off in Europe and Latin America, according to IDC.

      The analysts’ numbers mirror similar findings from market research firm Infonetics Research, which found that third-quarter revenue for the service provider router and switch market—which includes IP edge and core routers and Ethernet switches—fell 5 percent from the same period in 2011, coming in just less than $3.4 billion. Regionally, revenue dropped where the economy was struggling the most, according to Michael Howard, principle analyst for carrier networks at Infonetics.

      “The performance of the router/switch market roughly reflects economic conditions, and true to form, economic weakness in Europe, North America and Latin America drove down IP router and switch revenue in the third quarter,” Howard said in a statement. “[Europe, the Middle East and Africa] posted another negative quarter amid the ongoing fiscal crisis in Europe, and we may not see much of the usual final-quarter budget flush, as it seems just as the European Commission gets closer to economic steadiness, more negative reports arrive.”

      In the router space, Infonetics found that Cisco Systems continues to hold a strong lead in market share, but that Juniper Networks had regained the second-place position from Huawei Technologies. Alcatel-Lucent retained the third spot, while Huawei fell to number four.

      In all, those four vendors made up 88 percent of the total IP router revenue in the third quarter, the analysts said.

      According to IDC analysts, Cisco is continuing to dominate the Ethernet switch market, though its share of the market dropped. In the third quarter, Cisco’s share was 62.2 percent, a decline from 65.6 percent in the same period last year. In the fast-growing and highly competitive 10GbE space, Cisco holds 68.3 percent of the market.

      Revenue in the 10GbE space jumped 10.7 percent, while 10GbE port shipments rose 61.4 percent, IDC analysts said.

      Despite the disappointing overall numbers from the Ethernet switch market, the same trends that have fueled the growth in recent quarters—including bring your own device (BYOD) and video—are still growing, boding well for the networking industry, according to Petr Jirovsky, senior research analyst in IDC’s Networking Trackers Group.

      “While on the one hand the overall market suffered from increased macroeconomic uncertainty and weakness in the public sector in many regions, the year-over-year comparisons were harder this time around because of the stronger performance of the market in the same period last year,” Jirovsky said in a statement. “That said, the overall market drivers, such as the proliferation of video traffic on the network, and the need to support mobility and BYOD at the network edge, will continue to keep the enterprise networking market relevant over the longer term.”

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×