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IDC’s Worldwide Quarterly Enterprise Networks Tracker Shows Continued Strong Growth in Ethernet Switch and Router Markets in Second Quarter

By R&D Editors | August 23, 2010

IDC’s Worldwide Quarterly Enterprise Networks Tracker Shows Continued Strong Growth in Ethernet Switch and Router Markets in Second Quarter

FRAMINGHAM, Mass., August 23, 2010 – In
the second quarter of 2010 (2Q10), the International
Data Corporation (IDC) Worldwide Quarterly
Enterprise Networks Tracker
found year-over-year revenue growth of 32.7% in the Ethernet switching and 11.0% in the
Ethernet routing markets worldwide, reflecting continued strong performance
across all regions and key product segments.

“The second
quarter performance was very good, following on the heels of exceptional first
quarter results for the Ethernet switch market,” said Rohit Mehra, director,
Enterprise
Communications Infrastructure
at IDC. “As seen in previous years, the
second calendar quarter builds on the performance of the first, which is what
the market delivered, showing strong year-over-year growth from the slowdown
the market witnessed in 2009. The continued adoption of PoE (Power over
Ethernet) and gigabit ethernet is also being helped by the underlying
networking drivers – the growth of voice and video over IP applications,
network-attached devices, virtualization, and cloud computing.”

IDC’s update report found
that the worldwide router market showed moderate strength in 2Q10. The
enterprise router market was marginally lower compared to 1Q10, but had an 8.0%
year-over-year gain. This segment continues to be soft and off by around 25%
from the record levels seen in 2007 and 2008. Service provider router revenue now
accounts for 73.9% of the router market and includes both core and edge routers.

“The continued market
recovery in 2010 is very encouraging with all regions and market segments
making a contribution,” said Cindy Borovick,
vice president, Enterprise
Communications Infrastructure
and Datacenter Networks.
“IDC’s Worldwide Quarterly Enterprise Networks Tracker shows a strong 87.9%
year-over-year increase in 10GbE switch revenue in 2Q10 and for the first time there
were more than 1 million 10GbE ports shipped in the quarter. The 10Gb adoption
was driven by datacenter, cloud, and campus buildouts.”

From
a vendor perspective, Cisco’s Ethernet switch
market share increased to 65.8% in 2Q10 from 62.8% in 2Q09, but was down from
68.3% in the exceptionally strong 1Q10. Cisco performed on par with the Service
Provider router market and now accounts for 46.1% of Service Provider router
revenue (same as in 2Q09).

IDC’s Worldwide
Quarterly Enterprise Networks Tracker provides global Ethernet switch coverage,
including manufacturer revenue and port shipments by vendor, layer, speed, form
factor, power over Ethernet (PoE) capabilities, and average pricing. The router
coverage shows manufacturing revenue and unit shipments by vendor, product
class, deployment, connectivity, and average pricing. Ethernet switch and
router market results are delivered in a pivot table seven weeks after the
close of the calendar quarter.

For more information
about IDC’s Worldwide Quarterly Enterprise Networks Tracker, please contact
Petr Jirovský (pjirovsky@idc.com).

Contact

For more information, contact:

Rohit Mehra
rmehra@idc.com
508-935-4343

Petr Jirovsky
pjirovsky@idc.com
508-935-4378

Michael Shirer
press@idc.com
508-935-4200

SOURCE

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