Cisco's service provider routing market share rebounds with APAC, EMEA growth, says Synergy

Cisco may have seen its hold on the routing market slip in recent years, but according to Synergy Research Group, the vendor saw its share of service provider router and carrier Ethernet market improve due to strong performance in the EMEA and Asia-Pacific regions in the third quarter of 2014.

During the vendor's fiscal year first quarter, EMEA revenues rose 6 percent year-over-year to $3.1 billion while Asia-Pacific revenues rose 12 percent in the same period to $1.9 billion. Indeed, the uptick in both EMEA and Asia-Pacific helped drive Cisco's share of the worldwide router and Ethernet switching market to over 45 percent.

Although the majority of growth came from data center and security, switching rose 3 percent to $3.8 billion and next-gen routing rose 4 percent to $1.9 billion.

"Relative to the previous quarter Cisco gained a huge 9 percentage points of market share in both EMEA and APAC regions, while maintaining its position in North America" said Jeremy Duke, Synergy Research Group's founder and chief analyst.

Cisco's emerging rival Alcatel-Lucent (NYSE: ALU) grew its market share in the quarter, while Huawei and Juniper fell off the pace.

Overall third-quarter 2014 service provider router revenues were $3.4 billion, equal with the third quarter of 2013, but down 5 percent sequentially. Core routers made up 19 percent of third-quarter revenues, while edge routers accounted for 65 percent and Ethernet access aggregation devices were 16 percent.

On a regional basis, North America remained the biggest region, accounting for 37 percent of worldwide revenues, followed by APAC, EMEA and Latin America. However, on an annualized basis, the Asia Pacific market grew 10 percent, which Synergy said was the strongest market growth.

For more:
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