“this seasonal decline was expected, especially after the strong growth posted in Q4.”
Ray Mota - Managing Partner
(PRWEB) May 18, 2011
The Worldwide Carrier Routing & Switching markets have seen typical 1Q seasonality, declining 14.2% sequentially but growing 9.0% year over year, according to ACG Research. The Total Worldwide Carrier Routing & Switching market grew revenue $2.7B in Q1/11. Core Routing revenues were down 11.2% q/q and up 9.5% y/y. Edge Routing & Switching revenues down 15.1% q/q and up 8.9% y/y.
Cisco continues to hold the number one position with 50.3% of total market share. In a dramatic market shift, Juniper reclaimed its number two spot, bumping Alcatel-Lucent back to number three. According to Ray Mota, managing partner, “This seasonal decline was expected, especially after the strong growth posted in Q4.” ACG is cautiously optimistic about the future outlook of the market. “We see service providers spending on cloud computing and video services and managed services will help drive growth in the remainder of 2011. Vendors that execute on their strategy stand to gain good market share of CapEx spend associated with those services.”
Top Vendors: Worldwide Carrier Routing & Switching - 1Q11
Vendors_______Rank_____Q-Q MS Point +/-
QUARTERLY TREND and DRIVER HIGHLIGHTS
- Carriers are reducing their CapEx this quarter but still spending in mobility and new services creation opportunities.
- IP Address exhausted is becoming a key concern for service providers. Service providers have to decide about IPv6 transitioning plans now and gradually increase their costs or continue to employ band aid solutions to NAT and risk their business continuity.
- Security is the number one concern of enterprises as they continue to move toward virtualization and cloud offerings.
- Carriers are looking to Carrier Ethernet, QoS, CDN, IPv6, and end-to-end technologies to address their pain points associated with the increasing amount of video traffic
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