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| Gartner Dataquest Says Worldwide Service Provider Router Market Declined 7 Percent in the Second Quarter of 2002 | ||||||||||||||||||||||||||||||||||||||||||||||||
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SAN JOSE, Calif., September 4, 2002 - The worldwide service provider router (SPR) market totaled $494 million in the second quarter of 2002, which is down 7 percent from the first quarter of this year, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
Gartner Dataquest defines SPRs as carrier-class routers capable of providing multigigabit bandwidth in support of high-speed WAN interfaces. These devices are typically designed for installation in service provider networks. "The SPR market decline is due to the slowdown in telecom spending and the fact that service providers still have excess capacity in their networks which will last them at least two more quarters," said Jennifer Liscom, principal analyst for Gartner Dataquest's worldwide telecommunications and networking group. "SPR sales are indirectly driven by the increase in demand for higher speed Internet access." Cisco Systems dominated the worldwide SPR market, as its revenue surpassed $300 million in the second quarter of 2002 (see Table 1). Juniper was the No. 2 vendor in the market, with revenue totaling $87 million. Table 1 Worldwide Service Provider Router Vendors' Revenue for 2Q02 (Millions of Dollars)
Source: Gartner Dataquest (August 2002)
Cisco also had a commanding lead in the market in terms of shipments, as its second-quarter shipments were more than double the shipments of its nearest competitor, Juniper (see Table 2). While the top-tier vendors account for more than 90 percent of revenue and shipments, Gartner Dataquest analysts said there are still opportunities for other vendors. "The worldwide SPR market is still relatively young, so other vendors still have time to capitalize on this emerging industry," Liscom said. "Many technology suppliers will have products by 2003, and they will begin to challenge the incumbents as service providers re-evaluate their next-generation product needs and begin spending." Table 2 Worldwide Service Provider Router Vendors' Shipments for 2Q02 (Actual Units)
Source: Gartner Dataquest (August 2002)
This analysis is provided by Gartner Dataquest's worldwide Telecommunications and Networking group. This group provides an analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Telecommunications Focus Area at http://www.gartner.com/1_researchanalysis/focus/telecom_fa.html. To purchase the report or subscribe to Gartner Dataquest programs, call 408-468-8000 or go to www.gartner.com. Additional information on the telecommunications industry will be presented during Gartner Symposium/ITxpo 2002, October 6-11 in Orlando, Florida. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. For more information, please visit www.gartner.com/symposium. Members of the media can register by contacting Maria DiMasi at 212-699-2734, or by e-mail at GartnerEvents@eurorscg.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software and services sectors of the global information technology industry. About Gartner |
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Contact: Christy Pettey Gartner +1 408 468 8312 christy.pettey@gartner.com |
