Ethernet equipment tops US$1 billion mark

Ethernet equipment vendors generated US$1.1 billion in revenue in 2003 and IDC predicts this figure will reach US$6.3 billion by the end of 2008.

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By  Matthew Southwell Published  February 9, 2004

Ethernet equipment vendors generated US$1.1 billion in revenue in 2003, according to IDC, and equipment revenue is slated to increase at a 42% compound annual growth rate (CAGR) to reach US$6.3 billion by the end of 2008. Such growth makes Ethernet one of the strongest opportunities, in terms of both growth and revenue, in the telecommunications sector. Furthermore, the analyst house believes that such widespread adoption is beginning to change the way carriers architect their networks and that the technology has the potential to disrupt the base of historical telecom suppliers. “The vendor landscape in metro Ethernet is markedly different from the overall telecommunications equipment landscape,” says Sterling Perrin, senior analyst for optical networks research at IDC. “Most traditional suppliers, with the exception of Nortel, are just now entering this market and will experience a large uphill climb to gain share. However, strength in metro Ethernet will be critical for traditional suppliers, as this segment is quickly becoming a major piece of overall service provider spending,” he explains. IDC’s latest Ethernet market report reveals that, for the second year in a row, Cisco was the dominant vendor in the metro Ethernet market with a 38.9% share. Nortel came in second with 21.3% while Extreme and Lucent filled out the top four spots.

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