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Juniper Networks' Ethernet sales up almost 40 percent year-on-year

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December 8, 2015

On a global overall basis, the Ethernet switch market remains relatively unchanged-- flat on a year-on-year basis, but still subject to quarter-on-quarter swings in individual segments.

And make no mistake: the Ethernet switch market is predominently dominated by Cisco, and has been since the dawn of the internet itself and will most likely remain that way for the next decade.

But having said that, one vendor that can wave IDC's latest numbers in front of its investors is Juniper Networks, which sales were up almost 40 percent year-on-year.

However, at $230 million for the quarter, it's still a smaller player compared to Cisco's $3.79 billion in sales for the same period.

To be sure, Cisco's nearest competitor, HP declined slightly on a year-on-year basis, from $552.25 million in the third quarter of last year to $554.52 in Q3 2015.

The total Q3 Ethernet switch market revenue was $6.1 billion, barely two percent higher than for the same quarter last year, and the enterprise share slipped from Q2 to Q3 by 7.2 percent.

Overall, North America was the best place to be selling Ethernet switches this year, with IDC saying that sales rose a tad over 8.2 percent year-on-year.

The Asia-Pacific region rose 3.9 percent, China by 3.6 percent, and Western Europe was nearly flat at just 0.8 percent.

Other regional markets were even weaker for 2015, with weakening currencies probably contributing to some of the results-- Australia was down by five percent, the Middle East and Africa were down by about one percent, while Latin America was down by almost 10 percent.

Japan was down a staggering 19.8 percent, while Central and Eastern Europe were affected by a huge 22.5 percent drop in sales.

However, a more encouraging sign for vendors is that customers seem to be asking more about 40 Gbps network speeds.

While 10 Gbps port shipments rose by 27.4 percent, prices are still falling so the segment value dipped by about 1.6 percent nevertheless.

The 40 Gbps segment did rise by 41.4 percent year-on-year to a value of about $644 million, so there's definetely a new trend developing in that market segment.

For its part, the router market was even flatter than the switch segment, according to IDC-- the quarter has plateaud because service providers spent about 1.1 percent more than in Q3 2015, while enterprises spent 3.5 percent less.

And IDC's numbers also suggest that the so-called white-box market could be struggling as well. The number-two spot in the Ethernet switch market (categorized as “other”) slipped from $1.234 billion in Q3 2014 to $1.146 billion in 2015.

It will be interesting to see what 2016 will bring us in the Ethernet switch and router markets. Stay tuned.

Source: IDC Market Research.

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