Ethernet market continues to rebound as Cisco leads HP

Ethernet market continues to rebound as Cisco leads HP:

Ethernet switching market worldwide (Layer 2/3) produced revenues of $ US5.8 billion in the second quarter of 2015 (2Q15), an increase of 1.0 percent year over year and 7.6 percent increase quarter by quarter.

Meanwhile, the global provider router market operator and full service continued to recover from recent declines year over year, revenues of 11.5 percent year on year and sequential growth of 11 2Q15, 5 percent.

These growth rates are based on preliminary findings published in the International Data Corporation (IDC) Worldwide Quarterly Change Worldwide Quarterly Tracker Tracker Ethernet router.

From a geographic perspective, Asia / Pacific, including Japan (APJ) experienced a slight decrease of 2.4 percent over the previous year despite a sequential increase of 12.3 percent.

 "Total revenue and port shipment growth was weaker than expected in 2Q15," said Rohit Mehra, vice president, Network Infrastructure, IDC.

"Even the relatively strong 10Gb segment saw lower results than expected.

"Given the increasing workloads in systems across the enterprise, data center and service providers, this weakness is likely the result of the anticipation and delay around new and emerging speeds, intensifying competitive landscape making decisions, and of course, continued macroeconomic concerns. "

 Switch 10Gb Ethernet (Layer 2/3) revenues decreased by -3.9 per year to year, coming in just under $ US2.1 billion, and 10Gb Ethernet switch port shipments increased strongly 16.4 percent during the year with almost 7.3 million ports shipped in 2Q15, while average selling prices continued to decline.

40Gb Ethernet income reached more than $ US500 million for the third consecutive quarter in 2Q15, increasing 59.7 percent during the year.

10Gb and 40Gb Ethernet should remain the main drivers of global Ethernet switch market in the short term. 1Gb Ethernet switch revenue declined slightly (-1.5 percent year on year) as this segment continues to face price erosion.

 The provider of enterprise router market and comprehensive service has increased by 11.5 percent over the year of the year in 2Q15. Unlike the previous quarter, companies and providers of services segment experienced strong growth.

The business segment increased 8.3 percent year over year after year and 7.7 percent in the quarter to 2Q15.

12.5 percent year segment service providers performed particularly well, growing in years and 12.7 percent quarter on quarter.

 This will be a market to watch closely in the coming quarters as defined software architectures are beginning to be felt across the WAN, enabling network operators and service providers to benefit from these new capabilities.

The market for enterprise routers and combined service provider also saw good performances in all regions - APJ also saw a positive quarter, with growth of 8.9 percent on an annual basis in 2Q15.

 Cisco ended the quarter with 1.9 percent year-on-year growth of Ethernet switching market and the market share of 59.9 percent, slightly higher than its 59.4 percent stake in 2q14 figure.

In the 10GbE segment hotly contested, Cisco held 57.5 percent market share 2Q15, down from 61.1 percent in the previous quarter and 60.9 per cent stake in 2q14.

Net service provider business and business Cisco Router increased 14.9 percent year on year.

 HP's Ethernet switching revenue declined -2.6 percent year over year, but increased by 22.9 percent in the quarter 2Q15. Since HP switch market grew at 9.5 percent against 8.3 percent in the first quarter of 2015, but decreased 9.9 percent of its shares in 2q14.

Juniper has recovered after a first quarter down on the Ethernet switch with an increase of 6.9 percent and a sequential growth of 15.5 percent in 2Q15.

Your income decreased year after year for the fourth consecutive router quarter to -4.5 percent in a year to year basis, despite an increase of 18.8 percent sequentially.

"The price drop switch port has a flattening effect on the overall market growth, while the demand for switches, especially the Ethernet ports of 10Gb and 40Gb switching increases," adds Petr Jirovský, Director research , networking Trackers IDC Group.

"As the new rules at higher speeds like 25Gb, 50Gb and 100Gb Ethernet grow to a critical mass in the coming years, we expect this segment to remain dynamic and interesting for the foreseeable future."