Global Recession Stings Carrier Ethernet Switch/Router Market, but Long-Term Outlook Is Positive, Heavy Reading Finds
Alcatel-Lucent, Huawei, Extreme, and Others Have Been Turning Up Heat on Cisco.
NEW YORK, -- Worldwide sales of carrier Ethernet switch/routers (CESRs) fell 23 percent quarter-over-quarter and 27 percent year-over-year in the first quarter of 2009 to $423 million, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker service published by Heavy Reading (www.heavyreading.com), the market research division of TechWeb's Light Reading.
Heavy Reading now projects the global CESR market to decline by more than 20 percent to $1.75 billion in 2009 but return to growth as the economy begins to stabilize. Heavy Reading estimates the CESR market has a good chance to reach $2.74 billion by 2013.
"Carrier Ethernet remains the technology of choice for building converged telecommunications network solutions because of its extraordinary performance-price advantages, but the maturing market is not immune to economic woes that have affected every region, said Stan Hubbard, Senior Analyst for Heavy Reading and author of the CESR Quarterly Market Tracker. "The CESR market declined sequentially for the third quarter in a row in 1Q09. The slowdown actually accelerated due to the combined effect of the worsening global recession, intensifying vendor competition, lingering chaos in the credit markets that is forcing network operators to delay upgrades and expansions, and seasonal capital spending trends.
"Beyond the challenges posed by the dismal global economy, CESR competition has never been more intense - with about 19 vendors battling for their fair share of a pie that has contracted beyond what might have been anticipated just a few quarters ago," said Hubbard. "Numerous competitors armed with next-generation CESR platforms have been winning new business and trimming share from market leader Cisco."
Heavy Reading estimates that No. 1 Cisco lost 3 market share points in 1Q09. No. 2 Alcatel-Lucent and No. 3 Huawei each gained half a point to close at 19 percent and nearly 7 percent, respectively. No. 4 Extreme gained a full share point in 1Q09 and has recorded consistent share gains on a rolling four-quarter basis over the past 18 months. No. 5 ZTE, No. 6 Brocade/Foundry, and No. 7 Hitachi Cable were fairly close to one another in terms of market share.
Heavy Reading's CESR Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in CESR sector, including quarter-by-quarter revenue and market share breakouts for each supplier, sales by geographic region and application, and revenue projections through 2013 by region and application. The quarterly tracking service also analyzes each vendor's market strategy and identifies and analyzes customer wins, providing granular insight into this emerging market sector unavailable from other sources. It provides a comprehensive list of more than 280 operators and other entities around the world that have purchased CESR platforms.
The Heavy Reading report analyzes 18 vendors that are now generating sales from CESR products or could be in a position to roll out CESR products within the next 12 months. Equipment vendors examined include Alcatel-Lucent, ANDA Networks, Ciena, Corrigent Systems, Cisco Systems, ECI Telecom, Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei Technologies, Juniper Networks, MRV Communications, Nokia Siemens Networks, Nortel Networks, Telco Systems, Tejas Networks, and ZTE.
The CESR Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Quarterly reports may be purchased individually or as part of an annual subscription service.
For more information, or to receive a PowerPoint demo of the Carrier Ethernet Switch/Router Quarterly Market Tracker, please contact:
Dave Williams
Sales Director, Heavy Reading
858-485-8870
dave.williams@heavyreading.com
Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
201-587-2154
mendyk@heavyreading.com
About Heavy Reading
Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.
About TechWeb
TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $1.6 billion.
* 13.3 million business decision-makers: based on # of monthly connections
About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com.
NEW YORK, -- Worldwide sales of carrier Ethernet switch/routers (CESRs) fell 23 percent quarter-over-quarter and 27 percent year-over-year in the first quarter of 2009 to $423 million, according to the Carrier Ethernet Switch/Router Quarterly Market Tracker service published by Heavy Reading (www.heavyreading.com), the market research division of TechWeb's Light Reading.
Heavy Reading now projects the global CESR market to decline by more than 20 percent to $1.75 billion in 2009 but return to growth as the economy begins to stabilize. Heavy Reading estimates the CESR market has a good chance to reach $2.74 billion by 2013.
"Carrier Ethernet remains the technology of choice for building converged telecommunications network solutions because of its extraordinary performance-price advantages, but the maturing market is not immune to economic woes that have affected every region, said Stan Hubbard, Senior Analyst for Heavy Reading and author of the CESR Quarterly Market Tracker. "The CESR market declined sequentially for the third quarter in a row in 1Q09. The slowdown actually accelerated due to the combined effect of the worsening global recession, intensifying vendor competition, lingering chaos in the credit markets that is forcing network operators to delay upgrades and expansions, and seasonal capital spending trends.
"Beyond the challenges posed by the dismal global economy, CESR competition has never been more intense - with about 19 vendors battling for their fair share of a pie that has contracted beyond what might have been anticipated just a few quarters ago," said Hubbard. "Numerous competitors armed with next-generation CESR platforms have been winning new business and trimming share from market leader Cisco."
Heavy Reading estimates that No. 1 Cisco lost 3 market share points in 1Q09. No. 2 Alcatel-Lucent and No. 3 Huawei each gained half a point to close at 19 percent and nearly 7 percent, respectively. No. 4 Extreme gained a full share point in 1Q09 and has recorded consistent share gains on a rolling four-quarter basis over the past 18 months. No. 5 ZTE, No. 6 Brocade/Foundry, and No. 7 Hitachi Cable were fairly close to one another in terms of market share.
Heavy Reading's CESR Quarterly Market Tracker delivers a complete accounting of telecom equipment manufacturer revenues in CESR sector, including quarter-by-quarter revenue and market share breakouts for each supplier, sales by geographic region and application, and revenue projections through 2013 by region and application. The quarterly tracking service also analyzes each vendor's market strategy and identifies and analyzes customer wins, providing granular insight into this emerging market sector unavailable from other sources. It provides a comprehensive list of more than 280 operators and other entities around the world that have purchased CESR platforms.
The Heavy Reading report analyzes 18 vendors that are now generating sales from CESR products or could be in a position to roll out CESR products within the next 12 months. Equipment vendors examined include Alcatel-Lucent, ANDA Networks, Ciena, Corrigent Systems, Cisco Systems, ECI Telecom, Ericsson, Extreme Networks, Foundry Networks, Hitachi Cable, Huawei Technologies, Juniper Networks, MRV Communications, Nokia Siemens Networks, Nortel Networks, Telco Systems, Tejas Networks, and ZTE.
The CESR Quarterly Market Tracker is distributed in PowerPoint and Excel formats. Quarterly reports may be purchased individually or as part of an annual subscription service.
For more information, or to receive a PowerPoint demo of the Carrier Ethernet Switch/Router Quarterly Market Tracker, please contact:
Dave Williams
Sales Director, Heavy Reading
858-485-8870
dave.williams@heavyreading.com
Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
201-587-2154
mendyk@heavyreading.com
About Heavy Reading
Heavy Reading is an independent market research organization offering quantitative analysis of telecom technology to service providers, vendors, and investors. Its mandate is to provide the comprehensive competitive analysis needed today for the deployment of profitable networks based on next-generation hardware and software.
About TechWeb
TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $1.6 billion.
* 13.3 million business decision-makers: based on # of monthly connections
About United Business Media Limited
UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com.
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