Cisco regains momentum in core router and Ethernet switch market

The second quarter of 2011 saw continued service provider
investment in Edge and Core IP networks, driving up sales 9.3 percent
sequentially to $2.96 billion.

Routers and Switches continue to be the cornerstone of IP
network investments, providing the foundation to support the accelerating
growth of Mobile Internet, Video, Cloud, Collaboration and Data Center,
according to Synergy Research Group.

“Based on the second quarter results, it can be said
that discussions of Cisco’s market share struggles in this arena have been
highly exaggerated. Cisco certainly has regained its leadership momentum during
this quarter,” said Jeremy Duke, founder and principal analyst, Synergy
Research Group.

“Other notable performers in the quarter were Huawei
with strong Core Router sales in China and Alcatel-Lucent with strong Edge
Sales across the APAC region,” Duke added.

Cisco showed
the strongest momentum in the Core Router market where they gained market share
quarter-over-quarter and year-over-year as well as over a four-quarter rolling

North America, which represents the largest portion of
the Core Router market, saw the biggest share movements with Cisco gaining 4.94
market share points versus Juniper losing 6.22 market share points.

Further, when calculating market share measurements over
a rolling four-quarter average, Cisco gained 3.68 market share points compared
to Juniper losing 4.56 market share points. However, Juniper did see market
share gains in the Latin American and EMEA regions.

In the Edge Router market both Cisco and Alcatel-Lucent
saw good share gains as well. Alcatel-Lucent surpassed Juniper to regain its 2nd
place position.

Also the Synergy
report notes, with Service Providers responding to the exploding growth of
Mobile Data and Video traffic as well as their IP architecture investments in
CDNs, Cloud, SIP Trunking and Data Centers, Synergy continues to maintain its
aggressive forecast for the Service Provider Router market to approach 20
percent growth in 2011 despite the challenging worldwide economic environment.

By Team

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