The Worldwide
Carrier Routing and Switching market increased both quarter over quarter and year
over year, 14% and 5% respectively, with revenues of $3 billion. The core
routing segment posted revenues of $590 million, down 6.6% y-y but up 7.4% q-q.
Core has been in a soft cycle but we anticipate growth as the delays in
upgrades are now starting to be addressed. The edge market posted solid
revenues of 2.4 million, 8% y-y and up 16% q-q. The SP edge market continues to
be competitive because of the diverse range of applications and solutions, requirement
variations in the regions, and cross-technology solutions.
|
Worldwide Carrier
Routing & Switching Market Shares
|
||
|
Vendor
|
Rank
|
Revenue ($M)
|
|
Cisco
|
1
|
$ 1,524.8
|
|
Alcatel-Lucent
|
2
|
$
586.9
|
|
Juniper
|
3
|
$
515.2
|
Trends
· Operators are more focused on the drivers in the
edge of the network, which is increasing demand for edge products. Carriers are
increasingly moving to 100G, which is contributing to the caution carriers are
exhibiting as they choose their next core routers.
·
Enterprise
networks will continue to lead SDN adoption even though the really big
potential impact will eventually come from carriers, which will take place when
carriers have WAN infrastructure in place to support new services.
·
A key driver contributing to service provider router and
switching market growth is the increasing demand for mobile broadband and
providers investing in wireless networks to meet that demand.
·
Interest
in software-defined networking has increased in momentum for two primary
reasons: 1) a less than positive macroeconomic environment and 2) SPs are
searching for a new way to deliver services and realize OpEx savings.
In spite of
weaknesses and challenges in some global economies, the long-term demand for
high-performance and innovative networks continues to be strong. Mobility, Big
Data, capacity constraints and better utilization on network assets, which is
instigating a significant shift in networking, is top-of-mind for providers. Service
providers are looking to vendors for solutions that support these demands. In
response vendors are delivering cutting-edge products and services that address
virtualization, software-defined networking, and cloud. For more information about ACG's router and switching service, contact sales@acgresearch.net.
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