Report: SP Routing Market At An All-Time High While Cisco Share Drops
Cisco remains the dominant vendor in the market but its share of quarterly revenue hit an all-time low of 41%.
New Q2 data from Synergy Research Group shows that service provider spend on routers and carrier Ethernet hit an all-time high of $3.5 billion. Cisco remains the dominant vendor in the market but its share of quarterly revenue hit an all-time low of 41%. Cisco revenues were almost unchanged from the previous quarter but were down 4% year-over-year. Meanwhile its three main rivals, Alcatel-Lucent, Huawei, and Juniper, all saw strong revenue growth on both a sequential and year-over-year basis.
Q2 service provider router revenues grew 9% year-over-year and were up 17% from the previous quarter – Q1 having experienced the normal cyclical low. On a rolling annual basis the market grew by 5%. Core routers accounted for 19% of Q4 revenues, while edge routers accounted for 66% and Ethernet access-aggregation devices 15%. North America remained the biggest region accounting for 36% of worldwide revenues, but revenues in the region declined 15% year-over-year while EMEA revenues grew strongly and APAC revenues leapt by 40% to reach record levels.