Feeds

Router sales fall again in 2003

But bounce back in 2004

  • alert
  • submit to reddit

Intelligent flash storage arrays

Corporates and telcos will spend even less money on routers, the backbone of data networks, in 2003 than in 2002. This will be the third year in a row of declining spend worldwide on routers. But the decline curve is flattening, with research firm Dell'Oro projecting a modest fall in revenues this year of 2 per cent to $6.7bn.

Telcos are forecast to reduce their spending on wireline networks by 5-10 per cent this year, according to Dell'Oro, by way of Reuters (which appears to have got a copy of the report, or a more detailed press release than we've seen). This suggests to us that either corporates are spending more on routers, or the telco investment axe is falling more heavily on other networking equipment categories.

Next year, the wallets will start opening again, with the router market forecast to grow at an average annual rate of 6% through 2007. Which will be very good news indeed for the likes Cisco and Juniper.

Dell'Oro pinpoints the high-end as the big growth opportunity. Here is what Shin Umeda, Dell'Oro analyst has to say on the matter: "Service providers will allocate larger portions of their equipment budgets to products that help deliver new services to their customers, and high-end Routers represent that type of product. We also believe that, starting in 2004, service providers will begin to replace older systems with higher performance products, fueling demand for high-end Routers." ®

Beginner's guide to SSL certificates

More from The Register

next story
The cloud that goes puff: Seagate Central home NAS woes
4TB of home storage is great, until you wake up to a dead device
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Intel offers ingenious piece of 10TB 3D NAND chippery
The race for next generation flash capacity now on
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.