Infonetics: Competitors squeezing IP edge market share from Cisco

Infonetics Research has released new data from its second quarter 2011 "Service Provider Routers and Switches" vendor market share report that show the IP edge market to be posting continuing growth even though the market share leader, Cisco Systems (Nasdaq:CSCO), is starting to get squeezed a bit.

The IP edge market segment, which includes IP edge routers and carrier Ethernet switches, is experiencing vendor growth across the board. Cisco has traditionally dominated the market and continued to show 12 percent revenue growth during the second quarter. However, while Cisco stills owns almost a third of the market with a 32.2 percent share, its hold on the market has slipped sharply in the last 18 months from its first quarter of 2010 marketshare mark of 41.5 percent.

Cisco's competitors, including Huawei, Alcatel-Lucent (Nasdaq:EGHT) and others, have been eating away at its share and have been posting more impressive quarterly revenue increases. In the second quarter alone, Infonetics said Huawei's IP edge revenue grew 66 percent, while Alcatel-Lucent's increased 22 percent. Infonetics said the end-to-end [portfolios and mobile backhaul emphasis that some companies have may be helping them versus Cisco.

Meanwhile, Infonetics said the total service provider router and switch market grew 14 percent sequentially to $3.8 billion worldwide during the second quarter. Year-over-year, the market's increased measured out at 19 percent. The IP edge portion of that market jumped15 percent overall  sequentially in the second quarter, and 21 percent year-over-year.

For more:
- see the Infonetics press release

Related articles:
Alcatel-Lucent already has been seen surging in this market
Cisco recently made a small business play with Webex