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Cisco Continues to Lead the Switching Market

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Cisco has a market share of 59% in the Ethernet Switching business

According to IDC, Cisco’s (CSCO) revenues fell by 4% YoY (year-over-year) in the Ethernet Switching segment in 1Q16. Its market share also fell marginally from 59.2% in 1Q15 to 59% in 1Q16. The worldwide Ethernet switch market grew by 1.4% YoY to ~$5.5 billion at the end of 1Q16.

The other major players in this market include Hewlett-Packard Enterprise (HPE) and China’s (FXI) Huawei. HPE’s Ethernet Switch revenues rose by 18.1% YoY in 1Q16, and the company has a market share of 9.7%, compared to 9.2% in 4Q15.

Huawei’s revenues rose substantially by 33.2% YoY in 1Q16, whereas Juniper’s revenues fell by 7.3% YoY in the Switching business.

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How did Cisco’s Switching business perform in fiscal 3Q16?

Cisco’s Switching business saw revenues fall 3% YoY in fiscal 3Q16.[1. quarter ended April 2016] Revenues in this segment fell from $3.6 billion in fiscal 3Q15 to $3.4 billion in fiscal 3Q16. This 3% decline was driven by macro-related weakness in Cisco’s campus business offset by positive growth in the firm’s data center switching.

Switches contain ports to connect different network segments. Switches are similar to hubs (a networking device that connects multiple devices to the network using cables) but offer better performance.

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