Service Provider Router Sales Grew 28% in Q2 2008

Tag : network switch router
Service Provider Router Sales Grew 28% in Q2 2008 (Marketwire Via Acquire Media NewsEdge) RENO, NV, August 11 /MARKET WIRE/ --

Synergy Research Group (SRG) announces the
availability of the Synergy Q2 2008 Enterprise and ServiceProvider/Switch
Market Share report.

In Q2 2008, Service Provider investment continued to drive theoverall
Router market. Service Provider Router sales posted its thirddouble-digit
growth in the last five quarters. While the increasing demands of
multimedia network traffic such as video are contributing to Routersales,
Synergy believes managed services are also becoming a strong growthdriver.

Worldwide, businesses are turning to service providers for managedservices
as a cost-effective alternative to maintaining and running theirown
networks. Synergy believes as organizations continue to operateunder
challenging economic conditions, the trend to outsource networkservices to
Service Providers will continue to increase.

For service providers to address this opportunity they will need tooffer
competitively priced services that provide a flexible accessaggregation
architecture and an efficient operation to the Enterprise. Thiswill
require Service Providers to increase their Router investment,especially
at the edge of their networks.

The Router/Switch manufacturers that benefited most from ServiceProvider
investment in the quarter included Nortel, Tellabs, Cisco, Extreme,
Juniper, and Alcatel-Lucent.

Service Provider Router/Switch Vendor Sales Growth
Y-Y Q-Q
Nortel 37.4% 36.2%
Tellabs 15.7% 22.4%
Cisco 30.4% 13.2%
Extreme 75.9% 11.2%
Juniper 44.7% 7.2%
Alcatel-Lucent 6.2% 6.7%