Router, switch sales rise as buyers seek more features

Router, switch sales rise as buyers seek more features

Worldwide sales of both enterprise routers and switches crept up in the second quarter of 2006, as network managers sought out higher-end products, such as routers with advanced features, and high-speed LAN gear, a new research report says.

Infonetics Research says that sales of enterprise routers -- typically devices that connect businesses to carrier networks via broadband, T-1 or T-3 speeds -- jumped to US$1.07 billion for the second quarter of 2006, while revenue from enterprise LAN switches -- all port speeds and form factors combined -- reached US$3.7 billion.

The research firm says an up-tick router revenue, combined with a decrease in actual unit shipments means users are buying more expensive routers. To that end, high-end enterprise routers -- which feature multiple high-speed interfaces and integrated features such as security and voice -- accounted for 47 percent of all enterprise router revenue. Mid-range routers accounted for 46 percent while low-end routers made up 7 percent of revenue. Cisco was the leader in router sales, with around 75 percent of all revenue, followed by Huawei and Juniper.

In switching, Infonetics says, Ethernet devices with advanced features such as Layer 4-7 traffic management saw large gains. Application switch revenue was US$205 million in the second quarter, up 15 percent from the same quarter a year ago, and up 3 percent from the previous quarter.

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