uploads///

Cisco Systems’ Performance in Mature Switching, Routing Market

By

Jan. 4 2018, Updated 7:31 a.m. ET

Cisco leads the switching market

According to Synergy Research Group, Cisco Systems (CSCO) continues to lead the switching and routing space with a combined share of more than 50% in these markets. While Cisco has a share of 63% for enterprise routers, it has a share of 38% for service provider routers. It had a combined share of 48% in these markets at the end of 3Q16.

The other major players in these markets include Juniper Networks (JNPR), Nokia (NOK), Hewlett Packard Enterprise (HPE), and China’s (FXI) Huawei. These companies have an aggregate share of 4%–10% in switching and routing in the trailing 12-month period prior to 3Q17.

Article continues below advertisement

Switching and router revenue more than $11 billion in 3Q17

Synergy Research has estimated worldwide revenue of $11 billion in the switching and router markets for 3Q17. The report also stated that these markets generated more than $44 billion in the last four quarters, indicating a YoY (year-over-year) growth of 3%. Ethernet switching is the largest segment and accounted for about 60% of revenue. That vertical was also the fastest growing in terms of revenue, driven by the deployment of 100 GbE (gigabit Ethernet) and 25 GbE switches.

North America continued to be the largest market and accounted for more than 40% of worldwide revenue. Asia-Pacific saw a rise in revenue due to spending increases in China, which has also benefited Huawei.

According to John Dinsdale from Synergy Research, “The big picture is that total switching and router revenues are still growing and Cisco continues to control half of the market. Some view SDN and NFV as existential threats to Cisco’s core business, with own-design networking gear from the hyperscale cloud providers posing another big challenge.”

Advertisement

More From Market Realist