Feeds

Service provider kit sales to hold steady in '04

Fierce price competition

  • alert
  • submit to reddit

3 Big data security analytics techniques

Sales of high-end networking equipment to service providers jumped in the second half of the year, delivering some respite after a dismal 18 months for makers of switches and routers.

Sector sales were $1.4bn in the last quarter of 2003, up 13 per cent year-on-year and the second consecutive quarter to produce 13 per cent growth.

But before Cisco, Juniper et al break out the bubbly, total revenues of service provider routers and switches were $4.8bn in 2003, down nine per cent from the miserable performance of 2002.

The decline was led by a 23 per cent drop in multiservice switch revenue, as IP/MPLS took over the reins as the key investment driver. But service provider routers grew just two per cent from 2002, according to Infonetics Research's quarterly worldwide market share and forecast service, Service Provider Routers and Switches. It forecasts the value of this market will now grow at an annual rate of 16 per cent to reach $8.6bn in 2007.

Kevin Mitchell, Infonetics's lead analyst of the survey, reports that few vendors anticipate an general upturn in capital expenditure, but they "do expect their own revenue to grow by taking market share from other players and through new market expansion, such as to China or mobile wireless."

"This scenario makes for a very competitive market and may lead to intense price competition...But in 2004 the market will stabilize and begin to grow again as incumbents prepare for data network convergence and look for cost reductions and greater port density in multiservice switches."

Leader of the Pack

Cisco is the big leader in the service provider router and switch sector, increasing share from 44 per cent in 2002 to 48 per cent in 2003.

Nortel retained second place, increasing share from 14 per cent to 15 per cent of the market, while Juniper accounted for 12 per cent share to claim third place.

Lucent held on to fourth place, but its share declined from 10 per cent to six per cent. One of the biggest losers in the sector was Alcatel which saw its overall ranking drop to fifth, while market share plummeted from 10 per cent to six per cent. ®

SANS - Survey on application security programs

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.