North America drives growth in carrier router and switch market in 2Q10

Infonetics Research released its second quarter 2010 (2Q10) Service Provider
Routers and Switches market share and forecast report.

"IP core and edge router revenue in North America was the hero of the second quarter, up 15% sequentially and up 39% from this time last year, as operators put spending back on priority to handle more traffic, especially video over broadband and data and photos over mobile networks. Europe is in a holding pattern, struggling to pull out of the downturn, and is roughly 2 to 3 quarters behind North America. Although EMEA router spending was flat sequentially, it was up a nice 13% year-over-year. Asia Pacific showed a solid 10% sequential increase in router revenue, but is still behind the Chinese-stimulated 2009 pace," reports Michael Howard, co-founder and principal analyst for carrier and data center networks at Infonetics Research. (click Read More below)

REPORT SYNOPSIS

Infonetics' service provider router and switch report provides worldwide and regional market share, market size, forecasts through 2014, and analysis for IP core routers, IP edge routers, carrier Ethernet switches (CES), and multiservice ATM switches.

The report also tracks IP edge routers and CES by application (multiservice edge, BRAS, Ethernet access transport, and Ethernet services edge), as well as port count and port revenue detail for Ethernet ports (10M/100M, 1G, 10G, 40G, 100G), ATM/frame relay/PPP ports, POS/ATM/WDM ports, and other ports (FDDI, serial, analog, etc.).

Vendors tracked in the report include Alcatel-Lucent, Avici, Brocade, Ciena, Cisco, Ericsson, Extreme, Force10, Fujitsu, Hitachi Cable, Huawei, Juniper, NEC, Nokia Siemens, Nortel, Orckit-Corrigent, Tellabs, ZTE, and others.

Regions tracked in the report include Asia Pacific (with breakouts for China, Japan and the rest of Asia), Central and Latin America, EMEA (Europe, Middle East, Africa), North America, and worldwide.

Carrier demand growing for IPoDWDM and OTN on routers to save costs

Contrary to the general industry impression that there is little interest in deploying IPoDWDM on routers, a surprisingly large percentage of the service providers we surveyed recently are using or will use IPoDWDM on routers: about half in 2010, and 70% by 2012. Respondent adoption of OTN on routers is similar, though slower in the short term. The main driver for IPoDWDM is cost savings by using less expensive colored optics on routers instead of expensive OEO transponders on both ends of the router-DWDM connection. read more 

Ethernet services market gets boost from new Ethernet Exchanges, mobile backhaul

Carrier Ethernet Exchanges are an important new development that facilitate Ethernet connections and accelerate the move to Ethernet transport and services. The exchanges work like this: service providers pay small fees to a Carrier Ethernet Exchange to make it easy for them to locate, buy, and provision Ethernet connections from each other. This in turn jumpstarts more Ethernet services and more of the IP VPN services that ride on Ethernet transport. The net effect of these new Ethernet exchanges, combined with fast-rising mobile backhaul connections, is a quickening of the Ethernet and IP VPN services markets, and as a result, we have raised our revenue forecasts. read more

Carriers and enterprises gobbling up 10G, 40G, 100G ports to handle exploding traffic

While worldwide spending on service provider IP edge routers declined overall in 2009, spending on high-speed 40G ports on IP edge routers increased 125%. A similar trend is playing out in other routing and switching segments and in the optical network hardware space. This is the clearest indication yet that service providers are turning to higher-speed options for their next-generation networks to handle skyrocketing traffic. read more

RELATED RESEARCH

• Carrier Ethernet market is booming
• Shift seen in operator strategy for mobile backhaul; equipment spending up 21%

UPCOMING RESEARCH

See CARRIER ROUTING, SWITCHING, AND ETHERNET on Infonetics' portal (http://www.infonetics.com/login), for more information:

• Total Enterprise and Service Provider Routers Pivot
• Total Enterprise and Carrier Ethernet Switches Pivot
• IPv6 and Video Caching Deployment Strategies and Router Leadership: Global Service Provider Survey
• 10G/40G/100G Networking Ports
• Carrier Ethernet Equipment
• 3Q10 Service Provider Routers and Switches
• Ethernet and IP MPLS VPN Services