Global IP router sales up in a usually down quarter

While sales of most service provider router and switch equipment were down in the first quarter of 2008, as is the norm, IP router sales bucked the trend and finished the quarter up 6%, according to a new report.

An Infonetics quarterly report shows worldwide IP core and edge router revenue was up 23% for 2007 and is up 35% year-over-year from 1Q07 to 1Q08.

All service provider IP router vendors were up sequentially in the first quarter of 2008, ranging from big jumps, as from Fujitsu and Redback, to small gains, as from Huawei, and everything in between, as from the big guns, Cisco, Juniper, and Alcatel-Lucent, said Michael Howard, principal analyst and co-founder of Infonetics.

"Most of the IP router sales continue to hail from North America and EMEA, although Asia Pacific and CALA both saw very healthy IP core and edge router gains this quarter," he said.

Meanwhile, worldwide service provider router and switch revenue totaled $3.0 billion in 1Q08, down 1% from 4Q07.

Cisco is the biggest winner in the overall market (IP routers, CES, ATM switches), followed by Juniper. Both vendors gained a point in worldwide revenue market share.

Cisco gained 6 revenue share points in the carrier Ethernet switch (CES) market, which is down 11%, and leads by far. 

Huawei maintains second place, and Hitachi Cable gains enough share to pass Nokia Siemens for the No.3 spot in the quarter.

Global investment in ATM switch fell 29% sequentially.

In 2007, worldwide sales of service provider routers and switches totaled $7.3 billion, an all-time high for routers and switches, which have been steadily climbing since the nadir in 2003.