Charting the Networking Markets Rebound
The Ethernet switch market grew to $4.2 billion during fourth quarter of 2009.
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During fourth quarter of 2009, Ethernet switch sales grew 15% sequentially, 4% on a year-over-year basis.
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Buyers migrated to lower cost switches, which hurt revenue. Nevertheless, the high-value chassis switch segment of the market showed the highest sequential growth during fourth quarter of 2009 than of any other segment.
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After a rough first quarter, the 10G Ethernet switch market saw 63 percent worldwide revenue growth in 2009 over 2008.
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Cisco easily kept its No. 1 status in the market over the soon-to-be-combined forces of HP and 3Com.
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Cisco’s Ethernet switch revenue shot up by 19 percent sequentially during fourth quarter of 2009.
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Enterprise router revenue equaled $821 million worldwide during fourth quarter of 2009.
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The market grew sales 10 percent sequentially during the last quarter of 2009.
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Year-over-year sales declined dramatically in 2009 by 28 percent to just above $3 billion.
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Still, Infonetics analysts believe the sequential increase during fourth quarter shows the enterprise market is stabilizing in all regions.
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Cisco saw their unit share decrease only 1 point and its revenue share actually increase a point.
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3Com is the big success story in 2009 as the only vendor to increase enterprise router revenue in 2009, based on the success of its H3C brand.
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Wirelesss LAN equipment revenue equaled $571 million in fourth quarter of 2009.
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Sales in the market grew 16 percent year-over-year during fourth quarter of 2009, but remained flat compared to the previous quarter.
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Even though the Wireless LAN market went into freefall during early 2009, it only decreased by a total of 6 percent during all of 2009.
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Infonetics predicts that the drive for enterprise mobility, fixed-mobile convergence (FMC), and wired/wireless LAN convergence will generate growth in the market in 2010 and beyond.
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Cisco continues to lead the wireless LAN equipment market with 46% of the worldwide market in both 2009, followed by Aruba.