This is an interesting release if only for the simple fact that its claiming a 2% drop in enterprise routers purchased. I have to wonder if VoIP will be the "shot in the arm" that will boost the enterprise router market. There will be more and more "converged devices" that feature an integrated router, firewall, VoIP gateways, SIP Registrar, WiFi, and maybe even integrated 3G or WiMAX. So maybe Cisco's outlook, (the "big enterprise boy on the block") isn't so bad afterall. Time to change from "sell" or "hold" to "buy"? Any stock analysts want to pipe in? Actually, I don't think Cisco's stock is positioned for any substantial short-term gains (next 1-2 years), but then again, I said the same thing about Dell 7 years ago and they keep surprising the analysts and me...
Enterprise Router Market Totals $3.4 Billion in 2004, Down 2%
BOSTON, Massachusetts, February 22, 2005--Worldwide enterprise router revenue is down 2% both for the quarter and the year, totaling $816 million in 4Q04 and $3.4 billion in 2004, while unit shipments are up 8% quarter-over-quarter and 4% year-over-year, according to Infonetics Research's "Enterprise Routers" quarterly worldwide market share and forecast report.
Revenue is projected to return to the 2003 level of $3.5 billion in 2006, and should hit $3.6 billion in 2008, a five-year CAGR of 1%.
Despite router revenue being down 1%, Cisco actually gained a point in market share in 4Q04, maintaining its strong lead with 84% revenue and 77% unit market share. Vanguard is in second place for revenue share with 1%, and Allied Telesyn is second in units with 5%.
"Twelve percent of 4Q04 enterprise router revenue came from the sale of secure routers, up a percent from 3Q04," said Infonetics Research's Matthias Machowinski, directing analyst for enterprise voice and data. "We project secure routers to continue to take up a growing slice of the router revenue pie, accounting for 29% of total router revenue by 2008. Over time, router vendors could add security features into their routers as a default offering, at no extra charge, causing the standard enterprise router category to disappear."
Enterprise Routers tracks standard and secure high-end, mid-range, and low-end/SOHO routers. Forecasts and market share are updated quarterly and cover all regions (worldwide, North America, EMEA, Asia Pacific, and CALA).
Companies tracked in this service include 3Com, ADTRAN, Allied Telesyn, Cisco, Enterasys, Huawei, Juniper, Lucent, Nortel, Siemens, Tasman, Vanguard, and others.
For the table of contents, go to www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com, 916.933.3543.
Enterprise Router Market & VoIP
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