GartnerGroup's Dataquest Says Cisco Leads the Way in Rapid
Growing LAN Switch Market; Dataquest Publishes First Quarter
Results for LAN Switches, Routers, and Shared Media Hubs
08:02 a.m. May 21, 1998 Eastern
SAN JOSE, Calif.--(BUSINESS WIRE)--May 21, 1998--As the
networking industry experiences an on-going migration from
shared media hubs to LAN switches, the worldwide LAN switch
market surpassed $1.9 billion in the first quarter of 1998,
up 64 percent over the first quarter of 1997, according to
preliminary statistics from Dataquest, a unit of Gartner
Group Inc. (NASDAQ:GART).
Cisco Systems is driving the LAN switch market forward, with
its switching revenue growing by 132 percent in the first
quarter (see Table 1).
"The LAN switch is the bright spot in an otherwise soft
networking market," said John Armstrong, director and principal
analyst for Dataquest's Networking Worldwide program. "Cisco
continues to show strong momentum, thus providing a continuing
challenge for its competitors."
Table 1
Preliminary Worldwide LAN Switches Revenue Estimates
for First Quarter 1998
(Millions of U.S. Dollars)
Q1/98 Q1/98 Market Q1/97 Q1/97 Market Growth
Company Revenue Share (%) Revenue Share (%) (%)
-----------------------------------------------------------------
Cisco 813.2 42.4 349.7 30.1 132.5
3Com 266.8 13.9 190.1 16.3 40.3
Bay Networks 192.6 10.1 107.4 9.2 79.3
Cabletron Systems 192.6 10.1 236.2 20.3 -18.5
Others 450.6 23.5 279.3 24.0 61.3
Total 1,915.8 100.0 1,162.7 100.0 64.8
Note: Total percentages may not add to 100 percent due to rounding.
Source: Dataquest (May 1998)
The router industry grew 8.6 percent in the first quarter of
this year with revenue approaching $1.3 billion, while the
shared media hubs market declined 22 percent with revenue at
$663 million.
Cisco was the market leader in the router industry, maintaining
70.6 percent market share in the first quarter of 1998, but
their market share declined from the first quarter of 1997 when
its market share was at 73 percent (see Table 2). Fujitsu
showed the strongest growth among the top 4 vendors as it grew
220 percent over the first quarter of 1997.
Table 2 Preliminary Worldwide Router Revenue Estimates for
First Quarter 1998
(Millions of U.S. Dollars)
Q1/98 Q1/98 Market Q1/97 Q1/97 Market Growth
Company Revenue Share (%) Revenue Share (%) (%)
----------------------------------------------------------------
Cisco Systems 909.0 70.6 865.6 73.0 5.0
Bay Networks 109.8 8.5 130.8 11.0 -16.1
Fujitsu 50.2 3.9 15.7 1.3 220.0
IBM 38.0 3.0 19.4 1.6 96.0
Others 179.9 14.0 154.0 13.0 16.8
Total 1,286.9 100.0 1,185.5 100.0 8.6
Note: Total percentages may not add to 100 percent due to rounding.
Source: Dataquest (May 1998)
While the worldwide shared media hubs market declined in the
first quarter, 3Com remained the No. 1 vendor in the marketplace
as its revenue market share grew to 31.8 percent, up from 23.5
percent in the first quarter of 1997. Bay Networks, Cabletron
Systems, and Hewlett-Packard rounded out the top 4 vendors in
the shared media hubs market with 21.3, 5.7, and 4.9 percent
market share, respectively.
Additional market statistics are available in the Dataquest
Alert titled "Router, LAN Switch, and Shared Media Hub Market
Performance for First Quarter 1998." This report provides
preliminary market statistics including market size by product
category, market share for major segments, and sales broken
down by region.
This report is produced by Dataquest's Networking Worldwide
program. This program focuses on the developing LAN and WAN
technologies and products that are driving the growth of the
networking industry. Additional information on this program
can be found on Dataquest's Web site at
gartner.com.
To purchase these reports, or to subscribe to Dataquest's
Networking Worldwide program, please call 800/419-DATA, or
408/468-8009. More information about Dataquest's programs,
descriptions of recent research reports, and full text of
press releases can be found on the Internet at
dataquest.com.
Dataquest, a unit of Gartner Group Inc., has been providing global market
research and consulting
services for the high-technology and financial communities since 1971.
Dataquest provides worldwide
market coverage on the semiconductor, computer systems and peripherals,
communications, document
management, software, and services sectors of the information technology
industry.
As the world's leading authority on IT, GartnerGroup provides clients with a
wide range of products
and services in the areas of IT advisory services, measurement, research,
decision support, analysis,
consulting and training.
Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the
center of a global
community with 11,086 client organizations served by analysts in 80 locations
worldwide. Additional
information about the company is available on the Internet at
gartner.com.
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