Strong ATM Growth in WAN Driven by Rapid Deployment of xDSL, VoIP and VPNs,According to Cahners In-Stat Group
8:01 AM ET February 21, 2000
SCOTTSDALE, Ariz. (BUSINESS WIRE) - Feb. 21, 2000-?Cahners In-Stat Group reports that the total worldwide market for asynchronous transfer mode (ATM) and frame relay (FR)-based wide area network (WAN) switches grew 16 percent in Q499.
For the total year (1999), sales of ATM and FR WAN switches reached $4.5 billion, representing 26
percent growth over the previous year. ?ATM growth is increasingly driven by rapid deployment of
convergence services, such as xDSL, VoIP and VPNs,? said Laurie Gooding, senior analyst with Cahners In-Stat?s Voice and Data Group.
?Despite the emergence of DiffServ and new quality standards for IP, no other protocol delivers the support for multiple traffic types and QoS guarantees that these services require.?
Cahners In-Stat Group also found that:
Service providers purchased 80 percent of the multiservice switches sold in Q499. Lucent, Nortel and Cisco were the market share leaders in this segment, with 37 percent, 22 percent and 19 percent, respectively.
Sales of remote access concentrator and router-based VoIP gateways reached $741 million in 1999. Cisco, Lucent and 3Com lead in this segment, with year-end market shares of 51 percent, 28 percent and 11 percent, respectively.
Sales of ATM LAN switches dropped 4 percent and ATM NICs sales dropped 16 percent in Q499.
?As we predicted early on, Gigabit Ethernet is winning the battle in the LAN, but the outlook for ATM in the WAN is still strong,? said Gooding.
The report, Q4 1999 ATM Market Analysis, No.CQ00-01M4, includes detailed market shares and a rolling three-quarter forecast of the ATM equipment market. For more information on this service or to purchase a report, please contact Matt Woods at 617/630-2139, or visit instat.com to purchase online. The report is $2,995.
Cahners In-Stat Group (http://www.cahnersinstat.com) covers the full spectrum of digital
communications research from vendor to end-user, providing the analysis and perspective that allows
technology vendors and service providers worldwide to make more informed business decisions.
Contact: Cahners In-Stat Group Laurie Gooding, 630/627-8226 email: lgooding@instat.com www.instat.com
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