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May 23, 2012

Cisco News - Cisco Reports Worldwide Growth Due to Service Provider Expansion and Capacity Build-out

By Sujata Garud, TMCnet Contributor

As mobility and demand for video continues to drive providers to invest in wireless networks, ACG Research is expecting a solid growth in the Worldwide Carrier Routing and Switching markets in 2012. On the other hand, vendors mentioned weak economies and dip in demand from service providers as factors that contributed to their weak revenue increases in Q1.

According to ACG Research, Worldwide Carrier Routing & Switching market posted revenue of $2.7 billion in the Q1/2012. Total Worldwide Core Routing revenues dropped 0.8 percent q/q and down 8.2 percent y/y during the same period. Edge Routing and Switching revenues also witnessed a dip of 5.6 percent q/q but increased 1.9 percent y/y. 

Cisco, a worldwide leader in networking, has posted total worldwide growth at 2 percent q/q and 14 percent y/y. The company holds majority of market share with 57.4 percent of worldwide carrier routing & switching market. It reported triple-digit growth. Cisco (News - Alert) “has achieved $1 billion in total orders to more than 190 SP customers in 30 countries in just 1.5 years, 20 new customers in Q1 alone.” Cisco recently announced partnership with Bright House Networks in order to create a new suite of managed security services to ensure the safety of information in the data center.

Alcatel-Lucent (News - Alert), which holds 17.7% of total market share, decreased 11 percent q/q but increased 11 percent y/y. The company is gaining from the market momentum for 100G IP/optical as well as providers replacing and leveraging 100GE and IPv6 transition technologies. Alcatel Lucent (News - Alert) has recently signed an OEM agreement with Tribold (News - Alert), a leading provider of enterprise product management software developed for communication service providers.

Juniper that holds 16.4 percent of the total market share decreased worldwide routing revenue 4.8 percent q/q and 28.3 percent y/y. Juniper reported a 39 percent q/q increase in access aggregation switching. The company recently unveiled new upgrades for the TXP (News - Alert) multi-chassis routing system, providing a significant increase for the T Series Core Router line, including the T4000 and the T1600 line of core routers.

Edited by Amanda Ciccatelli

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