Ethernet switch, router markets decline in Q3

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[/caption] Meanwhile, the worldwide router market declined 0.2 percent year over year in 3Q12, according to research firm IDC. The 3Q12 results also showed that the Ethernet switch market increased in the mid to high single digit range, year-over-year, in Latin America, Japan, Central & Eastern Europe, and Middle East & Africa (MEA). On the other hand, Asia-Pacific (excluding Japan) was down overall with the market declining 3.5 percent year over year, whereas the US declined 6.4 percent and Western Europe decreased more significantly just over 10 percent year over year in 3Q12. “The surprising decline in the Ethernet switch market after several quarters of positive growth is a result of several factors, but the highlight was that the slower growth in the 10GbE core segment of the market could not completely offset the decline in the network edge/access segment,” said Rohit Mehra, vice president for network infrastructure at IDC. “10GbE along with the emerging 40GbE Ethernet switch segments are the ones to watch as growth in virtualized applications and converged infrastructure will continue to drive the need for advanced networks in datacenter buildouts.” 10GbE switch (Layer 2/3) revenue increased 10.7 percent year over year while 10GbE port shipments grew a remarkable 61.4 percent year over year to just under 3.5 million ports in 3Q12, and continue to be the main driver of the overall Ethernet switch market. The Layer 4-7 switching market worldwide grew at 6.9 percent year over year to reach $414.9 million in 3Q12. The worldwide Router market was essentially staying flat in 3Q12, declining 0.2 percent year over year. Regionally, the market saw a very strong 21.5 percent growth in Middle East & Africa and solid mid to high single digit increases were experienced in Asia-Pacific (including Japan) and the US. On the other hand, Central & Eastern Europe was down 8.7 percent year over year, Latin America declined 12.2 percent year over year, and Western Europe dropped a very significant 20.8 percent year over year in 3Q12. From a vendor perspective, Cisco’s Ethernet switch (Layer 2/3) market share in 3Q12 came in at 62.2 percent, reflecting a year-over-year decrease from 65.6 percent in 3Q11. Cisco’s market share in the fast growing 10GbE market segment stands at 68.5 percent in 3Q12. “While on the one hand the overall market suffered from increased macroeconomic uncertainty and weakness in the public sector in many regions, the year-over-year comparisons were harder this time around because of the stronger performance of the market in the same period last year,” said Petr Jirovsk, senior research analyst in IDC’s Networking Trackers Group. “That said, the overall market drivers, such as proliferation of video traffic on the network, and the need to support mobility and BYOD at the network edge will continue to keep the enterprise networking market relevant over the longer term.” ]]>

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