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Enterprise router market shows signs of life

Thu, 08/29/2013 - 3:25pm
Mike Robuck

The global enterprise router market saw a surge revenue in the most recent second quarter, but it’s too early to say whether the turnaround was complete.

According to a report by Infonetics Research, the global enterprise router market totaled $945 million in the second quarter, up 12 percent from the first quarter, and up 6 percent from the same quarter a year ago.

“I don’t want to call it a turnaround yet, but trends are starting to look more positive for enterprise routing,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. “For the first time in a year, revenue grew on a year-over-year basis in the second quarter of 2013 as the public sector vertical returned back to life.”

While Cisco continued its death grip on the top spot in the quarter, Juniper Networks leapfrogged HP to move into the No. 2 spot. Thanks to a government project, Juniper’s sales jumped more than 40 percent sequentially.

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By region, North America turned in another strong quarter, with router sales up 14 percent quarter-over-quarter and year-over-year.

Infonetics doesn’t expect EMEA (Europe, the Middle East, Africa) to be a strong growth market this year, but the second quarter of this year points to a bottom for enterprise router sales in the region

Infonetics also said that businesses’ move to low-end routers was slowing with the low-end router and branch office router segments now growing equally on a year-over-year basis

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