Edge/aggregation router market even with last quarter at $472M, while Cisco increases market share, according to Infonetics Research

August 15, 2002

2 Min Read

SAN JOSE, Calif. -- Worldwide revenue for edge/aggregation routers totaled $471.6 million in 2Q02, holding steady from 1Q02, according to Infonetics Research's quarterly worldwide market share and forecast service, Service Provider Routers and Switches. "The big story in the edge/aggregation router market is the imminent overlap of edge/aggregation and IP services routers," said Infonetics Research analyst and lead author of the report, Kevin Mitchell. "Vendors are adding firewalls, IPSec blades, MPLS-based service capabilities, and more QoS functionality to make the edge/aggregation routers more service-rich, which are beginning to directly compete with IP services routers. As these products develop into the same breed, competition will get fierce, and not all products--or companies--will survive the battle." 2Q02 Market Highlights:

  • 2002 is still expected to be a strong year for edge/aggregation routers, totaling $1.9 billion worldwide, a 25% increase from 2001

  • Cisco had a strong quarter in 2Q02, as their revenue increased 14% and revenue market share grew to 67%, the highest level since 2000

  • The addition of Unisphere's ERX router makes Juniper a strong number-two competitor in the edge/aggregation router market starting in 3Q02; the combined 2Q02 revenue market share for Juniper and Unisphere is 14%

  • Laurel officially entered the fray in 2Q02 , announcing Level 3 as their first customer for their MPLS-based private line

  • Redback expanded their relationship with Nokia, which will act as a global distribution channel for Redback's SE800 router and SMS; this partnership could propel Redback into a strong position in the edge/aggregation router market, especially as they consolidate edge platforms (routing plus SMS functionality) and leverage their existing contacts with top-tier service providers around the world

Service Provider Routers and Switches, which is available August 19, includes market share, market size, and forecasts for multiservice edge switches, edge/aggregation routers, IP services routers, multiservice core switches, and IP core routers. This service includes quarterly updated forecasts for all regions: worldwide, North America, EMEA, Asia/Pacific, and ROW. Infonetics Research Inc.

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