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| Gartner Dataquest Says Ethernet Switching Shipments on the Rise, but Revenue Remains Flat in Third Quarter of 2002 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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SAN JOSE, Calif., November 19, 2002 — The worldwide Ethernet switching industry received a boost in shipments in the third quarter of 2002 versus the same period last year, but revenue did not grow as quickly, according to preliminary results from Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
Worldwide Ethernet revenue totaled $2.9 billion in the third quarter of 2002, a 1.3 percent increase from the same period last year (see Table 1). Worldwide Ethernet port shipments reached 39.5 million units, a 21.7 percent increase from the third quarter of 2001 (see Table 2). Cisco continued to dominate the market with 72.9 percent of worldwide Ethernet switching revenue and 41 percent of port shipments. 3Com moved into the No. 2 position based on revenue, up from the No. 5 position in the third quarter of last year. Several vendors, such as Cisco, 3Com and Hewlett-Packard, have introduced fixed configuration Layer 3 switches with gigabit ports. "These switches are primarily targeted at the aggregation layer of the midsize and large enterprises," said Rachna Ahlawat, senior analyst for Gartner Dataquest's Enterprise Networking and Communications Worldwide group. "The switches are competitively priced in comparison to the Layer 2 switches. They are becoming increasingly popular among enterprises looking for a cost-effective solution with a limited budget, and yet protect their investment for deploying newer applications such as video and Internet Protocol (IP) telephony." Table 1 Preliminary Worldwide Ethernet Switching Vendor Revenue Estimates for 3Q02 (Millions of Dollars)
Source: Gartner Dataquest (November 2002)
Layer 3 switches represented 13 percent of the total Ethernet switches port shipments, and accounted for 48 percent of manufacturer revenue. The third quarter of 2002 was the first complete quarter of 10Gb port shipments. Gartner Dataquest estimates that this segment accounted for $13 million in manufacturer revenue. Table 2 Preliminary Worldwide Ethernet Switching Vendor Port Shipments Estimates for 3Q02 (Thousands of Units)
Source: Gartner Dataquest (November 2002)
This analysis is produced by Gartner Dataquest's Enterprise Networking and Communications Worldwide cluster research. This group provides a strong understanding and analysis of the premises-based communications market, from large enterprises to home networks. This includes such traditional voice and data products as PBXs, voice messaging and IVR systems, LAN equipment, routers, remote access and Internet connectivity, as well as the newly emerging contact center technologies, and voice/data (VoIP) converged systems. For more information on this program, please contact Deborah Gales at deborah.gales@gartner.com. For the latest research on the telecom industry, please visit Gartner's Telecommunications Focus Area at www.gartner.com/telecom-mkt. 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. Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com. |
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Contact: Tom McCall Gartner +1 408 468 8312 tom.mccall@gartner.com |
