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Tuesday, May 17, 2011

Juniper Recovers #2 Spot from Alcatel-Lucent in Q1/11 Service Provider Routing & Switching Market Share Report: ACG Research

The Worldwide Carrier Routing & Switching markets have seen typical 1Q seasonality, declining 14.2% sequentially but growing 9.0% year over year, according to ACG Research. The Total Worldwide Carrier Routing & Switching market grew revenue $2.7B in Q1/11. Core Routing revenues were down 11.2% q/q and up 9.5% y/y. Edge Routing & Switching revenues down 15.1% q/q and up 8.9% y/y.

Cisco continues to hold the number one position with 50.3% of total market share. In a dramatic market shift, Juniper reclaimed its number two spot, bumping Alcatel-Lucent to number three. According to Ray Mota, managing partner, “this seasonal decline was expected, especially after the strong growth posted in Q4.” ACG is cautiously optimistic about the future outlook of the market. “We see service providers spending on cloud computing and video services and managed services will help drive growth in the remainder of 2011. Vendors that execute on their strategy stand to gain good market share of CapEx spend associated with those services.”

Top Vendors: Worldwide Carrier Routing & Switching
Q-Q MS Point +/-

  • Carriers are reducing their CapEx this quarter but still spending in mobility and new services creation opportunities.
  • Many providers have exhausted or will soon exhaust their IP addresses. Service providers have to decide about IPV6 now and gradually increase their costs or continue to employ band aid solutions to NAP and risk their business continuity.
  • Security is the number one concern of enterprises as they continue to move toward virtualization and cloud offerings.
  • Carriers are looking to Carrier Ethernet, QoS, CDN, IPV6, and end-to-end technologies to address their pain points associated with the increasing amount of video traffic.

ACG focuses on providing market analysis and consulting to help service providers and vendors monetize their existing infrastructures and increase operational efficiency and profitability. ACG is uniquely qualified to develop the TCO analysis and white paper. ACG applies multi-disciplinary expertise and multidimensional solutions to complex business and technology issues, delivering greater strategic value than a one-dimensional firm. Each consulting engagement is uniquely structured — no forced methodologies or canned reports are employed. Our consultants’ collective experience is derived from leading firms across a broad spectrum of professional disciplines including management consulting, engineering, marketing, financial analysis, and IT management and operations. We combine advanced academic degrees with practical business experience.

ACG has extensive experience assisting vendors and service providers define and execute their marketing programs from determining their value proposition, positioning and messaging; to prioritizing marketing programs; to supporting execution by designing seminar series and developing and delivering compelling content such as keynote presentations, sales and analyst presentations, white papers, videos and articles.

Our strong relationships with vendor market leaders and innovative start-ups, enables ACG to offer extensive knowledge of product portfolios and strategies as well as emerging architectural shifts. We have a strong track record of predicting market trends and separating hype from practical reality.

Karen Grenier, Marketing and Communications
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