Carrier Ethernet Switch/Router Market Grows 12% Year-Over-Year to $538 Million in 2Q08, Heavy Reading ReportsCisco's Leading Market Share Falls Below 50% as Alcatel-Lucent and Hitachi Cable Spearhead Competitive ChallengePRNewswire NEW YORK, Sept. 25 /PRNewswire/ -- Worldwide sales of carrier Ethernet switch/routers (CESRs) rose 1% quarter-over-quarter and 12% year-over-year in the second quarter of 2008 to $538 million, according to the 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/). "Intensifying competition and macroeconomic weakness have taken some steam out of the hard-charging CESR market, but the fundamental business drivers remain strong and should still fuel market growth of as much as 15% per year through 2012," said Stan Hubbard, Senior Analyst for Heavy Reading and author of the CESR Quarterly Market Tracker. "More than 450 telecom operators and other entities around the world are investing in CESR solutions to support next-generation business, consumer, and cellular/WiMax backhaul services and applications." "We estimate eight of the 12 revenue-generating CESR vendors covered in the CESR Quarterly Market Tracker posted sequential growth in 2Q08, with No. 2 Alcatel-Lucent, No. 3 Hitachi Cable, and relative newcomer Juniper each recording strong growth and gaining share," said Hubbard. Both Alcatel and Hitachi Cable reported robust sales in Asia, which was the only regional market registering quarter-over-quarter growth in 2Q08. Heavy Reading estimates that market leader Cisco's CESR sales softened in 2Q08 and left the vendor with a market share just under 50%. Equipment vendors rounding out the top six CESR market-share positions in 2Q08 include: No. 4 Foundry, No. 5 Extreme, and No. 6 Huawei. "The CESR market is becoming intensely competitive," according to Hubbard. "Our conversations with industry players suggest that, by this time next year, we could see CESR products from as many as 21 different suppliers. This is giving service providers abundant choice in finding solutions tailored for their particular requirements, but it is pressuring vendors to be very strategic in managing research and development, sales, and marketing resources." 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 265 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 Technologies, 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 About United Business Media Ltd. United Business Media Limited is a leading global business media company. We inform markets and bring the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. We focus on serving professional commercial communities, from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists around the world. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com/ SOURCE: Heavy Reading CONTACT: Dave Williams, Sales Director, +1-858-485-8870, Web Site: http://www.heavyreading.com/ |