Synergy: Enterprise network infrastructure revenue remains, but varies by segment

Enterprises continue to be cautious about spending money on new services and network equipment with vendor revenues for the last four quarters declining, but by less than 1 percent on an annualized basis.

According to Synergy Group, aggregate revenues for the last four quarters reached $79 billion, with revenue in each of the last eight quarters being in the $19 billion-$21 billion range.

Interestingly, there were variances in the data center, Ethernet and wireless LAN segments.

On one hand, data centers, which comprise the largest segment of the market and revenues, declined by nearly 3 percent, while the enterprise voice segment remains in the doldrums and telepresence continues to suffer due to ongoing aggressive price competition. Alternatively, Ethernet switches grew 3 percent while wireless LAN grew the most at 9 percent.

From a vendor perspective, Cisco continues to enjoy a leadership position in six of the seven segments except for the data center servers market, where it is ranked fourth. Cisco's market share over the last four quarters across the seven segments was 32 percent.

Right behind Cisco is HP, which continues to lead the data center market and is ranked No. 2 in Ethernet switching and routers with an aggregated market share of 17 percent. The No. 2 ranked vendors in the other segments are Avaya (enterprise voice systems), Microsoft (UC applications), Aruba (WLAN) and Polycom (telepresence).

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