Telecom Suppliers Lost an Opportunity with Carrier Gateway Switches, IDC Says

FRAMINGHAM, MA – FEBRUARY 20, 2001 – Large telecom suppliers may have missed a major market opportunity with respect to next-generation central office switches. This is a key message of IDC's new report Carrier Gateway Switches: Market Analysis and Forecast, 2000-2005.


"Lingering fear of core product cannibalization has prompted these suppliers to slow roll this development in hopes of maintaining their installed base of products," said Tom Valovic, the author of the report and program manager for IDC's IP Telephony Services research. "Over the long term, however, start-up companies that have been developing products in this market may be able to do what Ciena did in the optical space just a few years ago: seize the high ground of both mind share and market share in a preemptive fashion."

By 2003, IDC believes at least several start-up companies in this market will achieve a high level of success in an increasingly volatile telecommunications industry where fundamental approaches are under significant pressure to adapt to new models. This is to say they will experience strong revenue growth, successfully penetrate incumbent carrier markets, fully legitimize their products in carrier-class environments, and begin to broaden their portfolios as vendors of switching equipment.

IDC's report, Carrier Gateway Switches: Market Analysis and Forecast, 2000-2005 (IDC #B23641), examines trends and product migration paths in this important emerging market space for next-generation networks. It evaluates the market position of all the major players including Sonus Networks, Unisphere Networks, Cisco, Convergent Networks, Tellabs, Santera, Oresis, and others. A five-year forecast of the market is provided as well as a series of selected vendor profiles. To purchase this report, please contact Bruce Atlas at 1-800-343-4952, extension 4053 or email him at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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