New Core Router Sales Push Market Towards All-Time High in 2Q15, According to Dell'Oro Group

Alcatel-Lucent Grabs Share, Huawei and ZTE Bolstered By China

Aug 25, 2015, 05:00 ET from Dell'Oro Group

REDWOOD CITY, Calif., Aug. 25, 2015 /PRNewswire/ -- In a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide Router market approached all-time high levels during 2Q15 with most of the growth coming from the ultra-high end Core Router segment.  Several vendors recognized sales from new core router products, after several quarters of customer evaluation and testing.

"Impressive double-digit year-over-year growth in the core this quarter was largely driven by the adoption of vendors' new core routing platforms.  These new, higher-capacity platforms are necessary for Service Providers who want to more efficiently deploy 100 GE connections—shipments of 100 GE ports grew over 150 percent year-over-year," said Alam Tamboli, Senior Analyst at Dell'Oro Group.  "We expect the strong growth to continue through 2015 and into 2016 as demand for 100 GE follows or exceeds a similar robust growth pattern that 10 GE did almost a decade ago," Tamboli continued.

Of notable mention was share gain from Alcatel-Lucent with its new core router product 7950 XRS.  We attribute Alcatel-Lucent's strength to the popularity of its 100 GE solution.  Sales in China were also strong on a year-over-year basis, and Service Providers in China have favored Huawei's followed by ZTE's solution over U.S.-based competitors Cisco and Juniper.  Although competitor Alcatel-Lucent still has some favor in China's core router market, we believe Huawei holds the dominant position in the overwhelming majority of new deployments within the country.

About the Report
The Dell'Oro Group Routers Quarterly Report offers complete, in-depth coverage of the Service Provider Core, Edge, and Enterprise Router markets for current and historical time periods.  The report includes qualitative analysis and detailed statistics for vendor market shares, revenue, average selling prices, and unit and port shipments.  To purchase this report, please call Matt Dear at +1.650.622.9400 x223 or email Matt@DellOro.com

About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com

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SOURCE Dell'Oro Group



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