REDWOOD CITY, Calif. -- According to a newly published report by Dell'Oro Group, the worldwide router market declined by 2 percent, following five straight quarters of revenue growth. "The quarter over quarter revenue decline was a result of a slightly weaker enterprise market, which indicates businesses are reluctant to upgrade or expand their router networks," said Shin Umeda, Principal Analyst for Routers Research at Dell'Oro Group.

Although the overall service provider market was flat for 2Q04, revenues from the highest performance routers grew impressively, increasing by 13% quarter over quarter. These high performance routers are deployed by telecommunications and Internet service providers to manage and carry Internet traffic. "Avici, Cisco, and Juniper each posted strong revenue increases in the 10 Gbps routers segment," said Umeda.

Dell'Oro Group