Random thoughts on the AcceleRouter market.
Looking over the list high growth markets from my previous post, I think it would be relatively easy to guesstimate the size of the AcceleRouter market. AcceleRouter "seamlessly" installs in front of existing routers.
And let's do it conservatively.
There are 500,000+ CSCO routers currently installed.
Plus who knows how many other vendor's routers - let's ignore them.
Assume that over the next five years half of those Routers get upgraded or replaced - a reasonable assumption as most of the older ones are being sorely taxed right now, and the problem only gets worse, never better.
Of those 250,000, assume 80% get upgraded with router accelleraters rather than replaced - again reasonable as network managers really hate major network changes if they can avoid them (replaced means a sales opportunity for MRVC too), we get a market of 200,000 router accellerater upgrades in the next 5 years.
If we assume MRVC can capture 25% of this new market (again reasonable as CSCO does not have a good router accellerater), we get sales of 50,000 AccelleRouters over the next 5 years.
The base AcceleRouter unit is $14,000. Assume only base units (as we don't know accessory prices), but each actual sale would be higher.
50,000 X 14,000 = $700 million dollars in revenue over 5 years - just from this one product.
Even if you cut that number in half, you still get more than 1 full year's sales out of this one product alone.
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