A strong backbone

The internet backbone router market has posted strong sales in Q105, despite being a traditionally weak season for business, according to the Dell’Oro Group.

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By  Simon Duddy Published  May 26, 2005

The internet backbone router market has posted strong sales in Q105, despite being a traditionally weak season for business, according to the Dell’Oro Group.

The research firm says the high-end (10Gbytes/s) router market expanded for the eighth consecutive quarter. Worldwide revenue grew 9% on the previous quarter, generating US$420m. Cisco is ranked first in market share, with Juniper second and Avici third.

“Even though the first quarter of the year is seasonally weak, high-end router demand was exceptional,” says Shin Umeda, principal analyst for Routers research at Dell’Oro Group.

“Internet and telecommunications service providers around the world are investing heavily in their backbone networks to keep up with the onslaught of network traffic coming from broadband users,” he explains.

Moving to the enterprise local area network (LAN), Dell’Oro reports a growth the Layer 4-7 server load balancing market, despite the overall Ethernet Switch market declining in Q105.

Sales of Layer 4-7 server load balancing (SLB) switches increased 3% during Q105, with a trend towards fixed switches within the segment over the past two quarters.

During this time, revenues from fixed switches have grown in the double digits, and now account for over 60% of total server load balancing revenues, which totaled US$151 for the quarter.

“A number of factors are contributing to the sustained growth in this segment,” says Seamus Crehan, director of Ethernet Switch research at Dell’Oro Group.

“These products continue to incorporate additional features, often focused on security, making them more attractive for enterprise deployments. Furthermore, server load balancing switches facilitate higher performance of web-enabled applications and increased server efficiency, both of which are currently an emphasis for businesses,” he adds.

Cisco is the leader in the segment with F5 Networks, Nortel, Radware and Foundry Networks at second, third, fourth and fifth places respectively.

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