Cisco captures three-quarters of the enterprise router market, says Infonetics

HP and Juniper come in a distant second and third
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Cisco (Nasdaq: CSCO) continued to dominate the enterprise router market in the third quarter with 75 percent of the revenues, according to the latest data from Infonetics Research.

Image source: Infonetics

HP (NYSE: HPQ) followed as a distant second with 6 percent of the market, and Juniper Networks (NYSE: JNPR) came in third with 5.9 percent. These market shares were virtually unchanged from the second quarter figures.

Overall, global enterprise router sales dropped 1 percent sequentially in the third quarter of 2012 to $854 million, according to Infonetics.

Sales of high-end enterprise routers dropped 10 percent in the third quarter compared with the same quarter in 2011. By contrast, sales of low-end small office/home office routers posted strong double-digit year-over-year growth, Infonetics found.

In the Asia-Pacific region, enterprise router revenue decreased 8 percent year-over-year in the third quarter, dragged down by slowing growth in China due to fewer exports to Europe.

Image source: Infonetics

"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," observed Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics.

On the Ethernet switch front, Infonetics noted a similar slowdown, with revenue dropping 3 percent both sequentially and year-over-year in the third quarter to $4.9 billion. At the same time, 40G Ethernet port shipments increased 37 percent in the third quarter. Cisco also leads the Ethernet switch market with 64 percent of the revenue in the third quarter.

Machowinski explained that "Ethernet switches are usually used for the internal enterprise LAN [local area network], while the router sits at the edge of network and connects to the WAN."

He added, "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. Overall weakness in Europe and softness in the public sector vertical in EMEA and North America are acting as a brake on growth."

Infonetics figures agree broadly with figures IDC put out earlier this month. IDC said the Ethernet switching market declined 4.4 percent year-over-year in the third quarter and the router market declined 0.2 percent year-over-year in the quarter.

For more:
- see Infonetics Research's enterprise router and Ethernet switch releases
- for comparison, check out IDC's data

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