Infonetics Research: Cisco Storms Back In IP Edge Market, Huawei Posts Biggest Loss

CAMPBELL, Calif.--(BUSINESS WIRE)-- Market research firm Infonetics Research today released excerpts from its third quarter 2011 (3Q11) Service Provider Routers and Switches vendor market share report, which analyzes the IP edge router, IP core router, and carrier Ethernet switch (CES) market segments and the manufacturers within them.

“Of the top five vendors, only Cisco increased its overall carrier router and switch revenue in the third quarter of 2011, up 3% from the previous quarter to $1.43 billion. Since Alcatel-Lucent, Huawei, Juniper and ZTE all saw double-digit percent declines in their carrier router and switch revenue in the same period, Cisco rises back up to over 40% market share for the first time this year,” notes Michael Howard, principal analyst for carrier networks at Infonetics Research.

Howard adds: “In the critical IP Edge segment (edge routers and carrier Ethernet switches), which now makes up 79% of the carrier router and switch market, Cisco expanded its lead to 36.2% on the strength of its recently refreshed carrier Ethernet switch portfolio and its ASR 9000. Cisco’s share gain is at the expense of its top competitors, particularly Huawei. With Huawei posting the largest sequential drop in IP edge market share in 3Q11, from 17.2% to 12.3%, Cisco’s IP edge share now nearly triples Huawei’s.”

MARKET HIGHLIGHTS

• The global service provider router and switch market, which includes IP edge routers, IP core routers, and carrier Ethernet switches (CES), is down 7.1% sequentially to $3.5 billion, following a 14.3% increase the previous quarter
• Year-over-year, the carrier router and switch market is up 4.5%
• In 3Q11, the IP edge segment (IP edge routers and CES), is down 6.7% sequentially but up 4.3% from the year-ago third quarter
• Top vendors posting gains in the IP edge segment in 3Q11 over 2Q11: Alaxala, Cisco, Ericsson, NEC, and Nokia Siemens
• Regionally, North America lead the downward trend in 3Q11 with the largest decline in carrier router and switch revenue (-15% from 2Q11), despite all the concerns about the Euro zone
  • The EMEA and Asia Pacific regions each posted 6% declines, while Central and Latin America (CALA) is the only region that posted an increase, led by Brazil

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, and CES. The report tracks the IP edge by application, including multiservice edge (MSE), broadband remote access server (BRAS), Ethernet access transport (EAT), and Ethernet service edge (MSE). Mobile packet core router coverage will be added in 2012.

SALES

• Larry Howard - Western N. America, Asia, CALA: larry@infonetics.com +1-408-583-3335
• Scott Coyne - Eastern N. America, Texas, Midwest: scott@infonetics.com +1-408-583-3395
• George Stojsavljevic - EMEA: george@infonetics.com +44-755-488-1623
• Japan, Taiwan, Korea: http://www.infonetics.com/contact.asp

RELATED MARKET RESEARCH

• Infonetics Research ups its Carrier Ethernet equipment forecast to $40.2 billion by 2015
• Telecom capex up 6% to $311B in 2011, rev. up 8% to $1.86T, driven by mobile broadband
• Survey confirms carriers want to integrate IPoDWDM and OTN optics into routers
• Majority of carriers plan IPv6 in 2011; caching, CDN critical to reduce traffic loads
• Service providers capitalize on Ethernet, IP MPLS VPN services; $78B market by 2015
• Small cell backhaul driven by capacity, coverage, quality; all-IP/Ethernet backhaul imminent
• White Paper: How Carrier Ethernet solves the challenges of LTE mobile backhaul

Download prospectuses, tables of contents, highlights, etc. at http://www.infonetics.com/login.

UPCOMING/RECENT MARKET FORECASTS AND SURVEYS

• Small Cell Deployment Strategies: Global Service Provider Survey (Nov. 2011)
• Small Cell and LTE Backhaul Strategies: Global Service Provider Survey (Nov. 2011)
• Ethernet and IP MPLS VPN Services (Dec. 14)
• Small Cell Equipment (2012)
• Small Cell Coverage Strategies: Global Service Provider Survey (2012)

Infonetics Research 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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CONTACT:

Infonetics Research
Lead Analyst:
Michael Howard, +1-408-583-3351
Co-founder and Principal Analyst, Carrier Networks
michael@infonetics.com

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