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BOSTON, Massachusetts, February 20, 2007—Worldwide enterprise router revenue increased 6% to $1.1 billion between the third and fourth quarters of 2006 and ended the year on a positive note, with annual revenue posting double-digit growth, says Infonetics Research in its latest Enterprise Routers & WAN Optimization Appliances report.
Meanwhile, the WAN optimization appliance market is heating up nicely, posting a quarterly gain of 23% between 3Q06 and 4Q06 and an annual gain of 37% between 2005 and 2006.
The underlying demand for routers is strong, with unit shipments expected to pass the 3 million mark in 2009, but intense competition and price erosion are curbing revenue growth. Still, worldwide revenue is projected to grow 13% to $4.8 billion between 2006 and 2009.
“The enterprise router market did well in the fourth quarter, and overall for the year as well, led by strong mid-range and high-end router sales ,” said Infonetics Research analyst Matthias Machowinski. “ The WAN optimization segment will be an interesting one to watch over the coming year—we’ve already seen an IPO and a number of acquisitions. It’s still an early market and there should be some serious market share battles ahead.”
CY06 Router Highlights
- Enterprise router port shipments totaled 6.1 million in 2006
- Cisco continues to lead the total enterprise router market by far, with 75% of worldwide revenue share, led by strong high-end router sales; Huawei is 2nd, Juniper 3rd
- 49% of enterprise router revenue was from high-end routers, 46% from mid-range, and 6% from low-end
- WAN optimization appliance revenue jumped 37% in CY06
- The burgeoning WAN optimization market is currently led by Expand, Juniper, Packeteer, and Riverbed
The Enterprise Routers & WAN Optimization Appliances report tracks WAN optimization appliances and high-end, mid-range, and low-end enterprise routers, and includes port detail (T1/E1/J1, T3/E3/J3, OC3/STM1, OC12/STM4, voice, Ethernet, ISDN, DSL, serial, etc.). Forecasts and market share are updated quarterly and cover all regions. Companies tracked include 3Com, ADTRAN, Allied Telesis, Cisco, Enterasys, Expand, Huawei, Ipanema, Juniper, Nortel, Packeteer, Riverbed, Siemens, Vanguard, and others.
Download report highlights at www.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.
Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research and capex analysis.
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