Infonetics: Weakness in Europe, Softness in Public Sector Braking Enterprise Switch and Router Growth

  Infonetics: Weakness in Europe, Softness in Public Sector Braking Enterprise
  Switch and Router Growth

Business Wire

BOSTON -- December 13, 2012

Market research firm Infonetics Research released excerpts from 2 3rd quarter
(3Q12) enterprise networking market share and forecast reports: Ethernet
Switches and Enterprise Routers.

ANALYST NOTE

“As we noted earlier, the double-digit growth rates in enterprise switches
during the first half of the year were unlikely to continue, and that is now
coming true,” notes Matthias Machowinski, directing analyst for enterprise
networks and video at Infonetics Research. “Overall weakness in Europe and
softness in the public sector vertical in EMEA and North America are acting as
a brake on growth.”

Machowinski adds: “In the enterprise router market, unit shipments are growing
at a decent pace, but substitution with lower end devices is making revenue
growth hard to come by. Further, here, too, the market is being dragged down
by weak demand from Europe and the public sector.”

3Q12 ETHERNET SWITCH MARKET HIGHLIGHTS

  * Ethernet switch revenue was $4.9 billion worldwide in 3Q12, down 3% both
    sequentially and year-over-year
  * Port growth exceeded revenue growth in 3Q12, indicating a return to
    increased discounting and sales of lower-value products
  * 40G Ethernet port shipments jumped 37% in 3Q12
  * Market leader Cisco’s share of global Ethernet switch revenue held steady
    in 3Q12 at about 64%
  * Number-3 player Juniper had a solid quarter, posting its 2nd-highest level
    of Ethernet switch sales

ETHERNET SWITCH REPORT SYNOPSIS

Infonetics’ quarterly Ethernet switches report provides worldwide and regional
market size, vendor market share, forecasts, analysis, and trends for Ethernet
switches and PoE, including ports, fixed configuration switches, and chassis
switches. Companies tracked include ADTRAN, Alaxala, Alcatel-Lucent, Arista,
Avaya, Brocade, Cisco, D-Link, Dell, Enterasys, Extreme, Hitachi Cable, HP,
Huawei, IBM, Juniper, Linksys, LG Ericsson, NETGEAR,  and  others. To buy the
report, contact Infonetics: http://www.infonetics.com/contact.asp.

3Q12 ENTERPRISE ROUTER MARKET HIGHLIGHTS

  * Global enterprise router sales fell 1% sequentially in 3Q12, to $854
    million
  * Low-end/SOHO routers were once again the bright spot, growing by strong
    double-digit percentages in 3Q12 from 3Q11
  * Sales of high-end routers are down 10% from the year-ago 3rd quarter
  * Despite a small sequential bump, enterprise router revenue in Asia Pacific
    is down 8% year-over-year; Japan remains strong, but growth in China is
    slowing as exports to Europe shrink
  * Router WAN ports are slowly moving away from low-speed legacy technologies
    like T1 to Ethernet, broadband, and the higher-speed legacy technologies
    like T3, OC3, and higher

ENTERPRISE ROUTER REPORT SYNOPSIS

Infonetics’ quarterly enterprise router report provides worldwide and regional
market size, vendor market share, forecasts, analysis, and trends for
high-end, mid-range, branch office, and low-end/SOHO routers, including
revenue and ports. Companies tracked include ADTRAN, Alcatel-Lucent, Cisco,
HP, Huawei, Juniper, NEC, OneAccess, and  others. To buy the report, contact
Infonetics Sales: http://www.infonetics.com/contact.asp.

RELATED RESEARCH

  * Infonetics’ latest Enterprise Networking research brief:
    http://bit.ly/XXykg8
  * Wireless LAN gear, star of the networking industry, tops $1 billion per
    quarter
  * Enterprises planning major wireless LAN upgrades
  * $25 billion opportunity for network manufacturers providing services to
    enterprises
  * Ethernet switch buyers looking at alternative vendors
  * Unified communications survey highlights enterprises’ shift towards
    mobility

RECENT AND UPCOMING RESEARCH

Download Infonetics ENTERPRISE NETWORKING report highlights, tables of
contents, prospectuses, market research brochure, and events brochure at
http://www.infonetics.com/login.

  * Enterprise Networking and Communication Vendor Leadership Scorecard (Nov.)
  * Infonetics CRS Report: Huawei 2011 Revenue Reconciliation (Nov.)
  * Total Enterprise and Service Provider Routers Pivot (Dec.)
  * Total Enterprise and Carrier Ethernet Switches Pivot (Dec.)
  * Enterprise Telepresence and Video Conferencing Equipment Market Forecasts
    (Dec.)

UPCOMING INFONETICS WEBCASTS

  * WEBINAR: Core Routers Move to the Metro (Apr. 2013)
  * WEBINAR: Architecting Wireless LANs for a BYOD World (TBA, sponsorships
    available)
  * WEBINAR: Evolving Routers for a Cloud-Based World (TBA, sponsorships
    available)
  * WEBINAR: The Future of Telepresence (TBA, sponsorships available)

TO BUY REPORTS, CONTACT:

N. America (West), Asia, Latin America: Larry Howard, larry@infonetics.com, +1
408-583-3335

N. America (East), Texas, Midwest: Scott Coyne, scott@infonetics.com, +1
408-583-3395

Europe, Middle East, Africa: George Stojsavljevic, george@infonetics.com, +44
755-488-1623

Japan, South Korea, China, Taiwan: http://www.infonetics.com/contact.asp

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) 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 effectively.
View Infonetics’ About Us slides at http://bit.ly/QUrbrV.

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Contact:

Infonetics Research
Matthias Machowinski, +1-408-583-3363
Directing Analyst, Enterprise Networks and Video
matthias@infonetics.com
Twitter: @infonetics