Long-term outlook for carrier router/switch market healthy despite lackluster 1Q13
Source: C114 View: 292 Date: 2013-06-06

Market research firm Infonetics Research released excerpts from its 1st quarter 2013 (1Q13) Service Provider Routers and Switches market share and forecasts report, which tracks IP edge and core routers and carrier Ethernet switches (CES).

ANALYST NOTE

“The 1st quarter is normally down for routers and carrier Ethernet switches, so it’s better to look at the longer-term trends,” explains Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research. “The main growth drivers – the transition from TDM to packet and rising video traffic – are still in effect, the U.S. economy is slowly improving, and a number of large operators in the Euro zone intend to spend.”

“Given these factors,” Howard adds, “We expect the router and CES market to grow at an 8.8% CAGR through 2017.”
SERVICE PROVIDER ROUTER AND SWITCH MARKET HIGHLIGHTS

•Pushed lower by weakness in Europe, global service provider router and switch revenue declined 17% in 1Q13 from 4Q12, and is down 6% from the year-ago quarter (1Q12)

•North America was the only geographic region to buck the usually down Q1, posting a 7% sequential gain

•EMEA (Europe, the Middle East, and Africa), Asia Pacific, and CALA (Caribbean and Latin America) all declined by double digits in 1Q13

•Cisco maintains its strong hold on the #1 spot in the overall carrier router and switch market with 39% revenue share in 1Q13

•Meanwhile, the fight for the next 3 positions in the carrier router and switch market remains tight, with less than 1 percentage point separating Alcatel-Lucent, Huawei, and Juniper

Alcatel-Lucent edged ahead of Huawei for 2nd place in 1Q13

•Private router company Compass-EOS recently announced NTT as a customer for its new core router that provides terabit-per-second connectivity to facilitate software-defined networking (SDN) and network function virtualization (NFV)

Source:infonetics

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