Demand for Internet Core Routers Declined for Second Consecutive Quarter, According to Dell'Oro Group

Cisco Strengthens Leadership in $3 Billion Core Router Market

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Jun 05, 2012, 09:00 ET

REDWOOD CITY, Calif., June 5, 2012 /PRNewswire/ -- According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the Service Provider Core Router market declined year-over-year for the second consecutive quarter. Sales of the devices that route all Internet traffic fell 7 percent in the first quarter of 2012, following the 13 percent decline in the prior quarter.

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"For several quarters now, we have seen a dramatic slow-down in core router demand, driven partly by normal investment cycles, but also by macroeconomic uncertainty," said Shin Umeda, Vice President at Dell'Oro Group. "The good news is that we believe that we are on the cusp of a new investment cycle in which network operators will upgrade to 100 gigabit technologies that offer 2.5 to 10 times more capacity than what is generally deployed today. We expect to see a meaningful market uptick in the second half of this year" added Umeda.

Cisco Systems was the leading manufacturer of the Service Provider Core Router market in the first quarter of 2012, recording the highest market share in almost ten years. Juniper Networks was ranked second, followed by Huawei Technologies.

About the Report
The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the Service Provider Core and Edge and Enterprise Router markets for current and historical time periods. The report includes qualitative analysis and detailed statistics for vendor market shares, revenue, average selling prices, and unit and port shipments. To purchase this report, please call Jessica Hsueh at +1.650.622.9400 x222 or email [email protected]

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

SOURCE Dell'Oro Group