Carrier Ethernet Switch/Router Market on Pace to Grow Nearly 20% in 2008, Heavy Reading Reports

Alcatel-Lucent, Extreme Drive Market With Strong Double-Digit Growth in 1Q08

PRNewswire
NEW YORK
Jun 16, 2008

NEW YORK, June 16 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers rose 4% quarter-over-quarter and 26% year-over-year in the first quarter of 2008 to reach $530 million, according to the latest Carrier Ethernet Switch/Router Quarterly Market Tracker published by Heavy Reading (http://www.heavyreading.com/), the market research division of TechWeb's Light Reading (http://www.lightreading.com/).

"Seven out of the 12 CESR suppliers that we follow in the CESR Quarterly Market Tracker increased sales sequentially in 1Q08, as communication service providers in every region of the world stepped up investments in Ethernet as the network technology of choice for metro transport and aggregation," says Stan Hubbard, Senior Analyst at Heavy Reading.

"The CESR market is on track to grow from $1.9 billion in 2007 to nearly $2.3 billion in 2008, but macroeconomic headwinds, especially in the U.S., have caused us to be more conservative about long-term market growth," notes Hubbard. "We have reduced our forecast by several hundred million dollars, to $4.3 billion in 2012, despite continued weakness in the U.S. dollar, which has tended to inflate the size of the market versus what it would be if measured in euros, pounds, or yen."

Fueled by 20% sequential growth and many new customer wins in recent quarters, No. 2 vendor Alcatel-Lucent continued to regain CESR ground and closed 1Q08 with a 22% market share. Market leader Cisco maintained a comfortable market share lead but ended down a point at 53%. This was the second quarter in a row in which Cisco's CESR sales declined, according to Heavy Reading estimates.

Other vendors rounding out the top five market share positions in 1Q08 include: No. 3 Foundry, No. 4 Hitachi Cable, and No. 5 Huawei. No. 6 Extreme recorded the fastest quarter-over-quarter growth of any vendor, due to a pop in European sales.

Heavy Reading's Carrier Ethernet Switch/Router Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in CESR sector, including quarter-by-quarter revenue and market share breakouts for each supplier, sales by geographic region and application, and revenue projections through 2012 by region and application. The quarterly tracking service also analyzes each vendor's market strategy and identifies and analyzes customer wins, providing granular insight into this emerging market sector unavailable from other sources. It provides a comprehensive list of more than 260 operators and other entities around the world that have purchased CESR platforms.

The Heavy Reading report analyzes 15 vendors that are now generating sales from CESR products or that plan to roll out CESR products. Equipment vendors examined include Alcatel-Lucent, ANDA Networks, Ciena, Cisco Systems, ECI Telecom, Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei, Juniper Networks, MRV Communications, Nokia Siemens Networks, Nortel Networks, and Tejas Networks.

The Carrier Ethernet Switch/Router Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Quarterly reports may be purchased individually or as part of an annual subscription service.

For more information, or to receive a free PowerPoint demo of the Carrier Ethernet Switch/Router Quarterly Market Tracker, please contact:

  Dave Williams
  Sales Director, Heavy Reading
  858-485-8870
  dave.williams@heavyreading.com

  Press/analyst contact:
  Dennis Mendyk
  Managing Director, Heavy Reading
  201-587-2154
  mendyk@heavyreading.com


  About Heavy Reading

Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

* 13.3 million business decision-makers: based on # of monthly connections

SOURCE: Heavy Reading

CONTACT: Dave Williams, Sales Director, Heavy Reading, +1-858-485-8870,
dave.williams@heavyreading.com; Press, Dennis Mendyk, Managing Director, Heavy
Reading, +1-201-587-2154, mendyk@heavyreading.com

Web site: http://www.lightreading.com/
http://www.heavyreading.com/
http://www.techweb.com/aboutus