IDC’s Worldwide Quarterly Enterprise Networks Tracker Shows Exceptionally Strong Growth in Ethernet Switch and Router Markets for the First Quarter

FRAMINGHAM, Mass. – May 25, 2010 – International Data Corporation (IDC) Worldwide Quarterly Enterprise Networks Tracker found 35.3% year-over-year growth in Ethernet switch revenues and 15.1% year-over-year growth in Ethernet router revenue in the first quarter of 2010 (1Q10). The revenue gains were due to a strong market demand across all regions and key product segments.

"The first quarter was an exceptionally good quarter for the Ethernet switch market," said Rohit Mehra, director, Enterprise Communications Infrastructure at IDC. "Typically, first calendar quarters tend to be seasonally weak, but 1Q10 was quite different. We are once again seeing growth in the Ethernet switch market being driven by healthy underlying networking drivers – the growth of voice and video over IP, network-based businesses and applications, network-attached devices, virtualization, and cloud computing – and that the negative impact of the macroeconomic conditions of 2009 is subsiding."

"The 1Q10 results include a remarkable 111.2% year-over-year increase in 10GbE switch revenue, and for the first time 10GbE revenue surpassed the $1 billion mark, reaching $1.15 billion for the quarter," said Petr Jirovský, senior research analyst, Enterprise Communications Infrastructure. "The 10Gb adoption was driven by datacenter, cloud, and campus buildouts."

The worldwide router market also rebounded strongly in 1Q10. After 4 consecutive quarters of year-over-year declines, total router market revenue increased 15.1% compared to the first quarter of 2009. The enterprise router market, which was essentially flat quarter over quarter and year over year, continues to be soft and off by around 25% from the record levels seen in 2007 and 2008. Service Provider router revenue, which now accounts for 72.7% of the router market and includes both core and edge routers, grew a healthy 21.9% year over year with multi-service edge routers growing the most (38.6% year over year).

From a vendor perspective, Cisco accounted for the biggest gain in Ethernet switch revenue and its market share increased to 68.5%, up from 64.5% in 1Q09, and its highest level since 3Q06. Cisco also outperformed the market in the Service Provider router market, growing 41.3% year over year. Cisco now accounts for 52.9% of this market, up from 45.6% in 1Q09.

"The breadth of the network market recovery is very encouraging with all regions and market segments making a contribution," said Cindy Borovick, vice president, Enterprise Communications Infrastructure and Datacenter Networks. "Of all enterprise IT priorities, networking clearly remains a key building block, playing an important role in next-generation IT infrastructures."

The IDC Worldwide Quarterly Enterprise Networks Tracker delivers geography-specific vendor and product-line detail for the Ethernet switch, router, wireless LAN, and IP PBX network market segments. The Ethernet switch coverage includes manufacturer revenue and port shipments by vendor, layer, speed, form factor, power over Ethernet (PoE) capabilities, and average pricing. The router coverage shows manufacturing revenue and unit shipments by vendor, product class, deployment, connectivity, and average pricing. Market data is delivered in an easy-to-use pivot table seven weeks after the close of the calendar quarter.

For more information about IDC's Worldwide Quarterly Enterprise Networks Tracker, please contact Petr Jirovský at 508-935-4378 and

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