Router Numbers Support Cisco
Cisco Systems Inc. (Nasdaq: CSCO) has won back market share from Juniper Networks Inc. (Nasdaq: JNPR) in the core router market, according to new data from Infonetics Research Inc.
The networking giant bragged on a conference call earlier this month that it had won 3 to 5 percent of the core router market back from Juniper. That claim was confirmed today by Infonetics, which told Light Reading that Juniper, which has been steadily gnawing at Cisco's market dominance for years, dropped from 32 percent of the market in the first quarter of 2001 to 26 percent in the second quarter (see Report: Juniper Still Gaining On Cisco and Juniper Eats Into Cisco's Lunch).
Infonetics' market share figures for core routers are based on each vendor's worldwide revenues coming from service providers. The market researcher's new report on the core and edge hardware in service provider markets goes out to clients this week.
For its part, Cisco's market share went from 65 percent to 70 percent from Q1 to Q2 2001. The only other router vendor shipping for revenue during the quarter was Avici Systems Inc. (Nasdaq: AVCI; Frankfurt: BVC7), which grew from 2 percent of the market in Q1 to 4 percent in Q2.
The only recent change in the data measurement came in Q1, when Infonetics began counting Juniper's M20 router as an edge, rather than core, device. (Even with that reclassification, Juniper's share climbed from 30 to 32 percent in Q1.) So Q2's results mark the second quarter in a row that Infonetics has compared Juniper's M40 and M160 core routers with Cisco's 12000 Series of Internet routers.
Despite the back-and-forth tugging between Cisco and Juniper, all core router makers are in for some tough times, says Infonetics analyst Kevin Mitchell. The size of the core router market shrank to $581 million from $757 million (about 23 percent) in just one quarter. "The core router market is in for some trying times," says Mitchell.
Mitchell says he sees the market staying flat for the next six months, but figures there could be some growth in 2002 when service providers start buying terabit routers.
- Phil Harvey, Senior Editor, Light Reading