Telecom Lead India: Technology major HP has more than
doubled its enterprise router market share in 2011, mainly due to its exposure
to the Chinese market. Infonetics Research said Cisco’s share of the enterprise
router market dropped a couple of points in 2011.
Cisco commands nearly 3/4 of the global market, and
reversed a downward trend with a nice bump up in router revenue in the final
quarter of 2011.
Enterprise router sales increased 1 percent to $920
million in Q4 2011 over Q3.
Q4 enterprise router sales are down 3 percent from Q4
2010.
In 2011, the enterprise router market is up 2 percent to
$3.5 billion from 2010.
Growth in the enterprise router market in 2011 was driven
almost entirely by China, which saw a 34 percent jump in revenue from the
previous year.
Buying patterns have changed and that in turn is hurting
revenue, still down some 18 percent from the pre-recession peak. While the
high-end of the market remains robust as buyers invest in congested and
mission-critical parts of their network, there is significant substitution in
the bulk of the market (branch and mid-range routing) with lower cost
solutions,” said Matthias Machowinski, directing analyst for enterprise
networks and video at Infonetics Research.
Cisco / HP battle heats up in Ethernet switch and enterprise
router markets
Recently, Infonetics said there is a fierce competition
going on between Cisco and HP to gain leadership position in the Ethernet
switch and enterprise router markets. Cisco and HP had steady revenue market
share from Q1 2011 to Q2 2011, but Cisco’s share is down more than 3 points
from a year ago, while HP is up by over 2 points.
Juniper, Enterasys, and Extreme outpaced the overall
Ethernet switch market with double-digit revenue growth and small gains in
revenue share this quarter.
Ethernet switch buyers are in the driver’s seat right
now, as vendors are fiercely competing for their business.
editor@telecomlead.com
