In-Stat Analysis Shows Remote Access Server Market Grew
28% While Routers Grew 7% in Sales over First Three
Quarters of 1996
01:16 p.m Nov 24, 1997 Eastern
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 24, 1997--In-Stat released its
Q3 Networking Quarterlies results for Routers and Remote Access Servers
(RAS).
RAS sales grew 28% and port shipments grew 43% for the first three quarters of
1997 over the same period in 1996. Although unit shipments were flat the first two
quarters of 1997, Routers rallied in Q3, primarily driven by a double-digit up-tick in
branch office router shipments.
The RAS market experienced a lull in Q3 1997, dipping 6%. Sales dipped 7%, with
the strong dip in Access Concentrators being the primary driver.
"Access Concentrators, which demonstrated strong market demand in the past,
posted a 7% dip for port shipments and sales. We believe this was caused by three
factors: confusion over 56k solutions, less than ideal economies in Europe and
Japan, and a major player in the market experiencing a 25% drop in Access
Concentrator sales due to company-specific issues," explained Jeremy Duke,
director of In-Stat's Communications Market Services Group.
In-Stat believes this lull will not continue into the next quarter. "The Access
Concentrator market is being driven by two fundamental factors that show no sign
of slowing. Large organizations continue to build out enterprise-wide access for
their employees, customers, and partners, and service providers continue to build
their infrastructure in an effort to keep up with demand for Internet services to
commercial and consumer markets," Duke added.
There are several points worth noting in the Q3 1997 Access
Concentrator market: 3Com/USR ranked number one in Q3, Cisco
continued to gain share quarter-to-quarter, and Ascend continued
to loose market share quarter-to-quarter.
The router market has been experiencing flat revenues for the prior five quarters,
teetering at about $1.5 billion each quarter, with Q3 coming in slightly lower at
$1.47 billion. Unit shipments softened, showing a decrease in Q1 and only a slight
increase in Q2 1997. However, Q3 unit shipments jumped 7% quarter-to-quarter.
The first three quarters of 1997 show unit growth of 26% and a sales growth of 7%
over the same period last year.
Duke believes the router market is being affected by significant trends in the
networking industry. Demand for low-end routers shows signs of slowing from the
hyper growth experienced in prior years. A strong element of anticipation exists
over the new breed of routers (Layer 3 Switches) to hit the market during the first
half of 1998. And service providers appear to be moving from think mode to
spending mode.
"Q3 1997 RAS Market Analysis" No. CQ9704M3, and "Q3 1997 Router Market
Analysis" No. CQ9704M2 are Duke's new reports for In-Stat's Networking
Quarterlies Service. They include more depth on market shares, key vendors, and a
rolling three-quarter forecast of the Routers and Remote Access Servers markets.
Each of these reports is specially priced at $2,495, which includes analyst inquiry
privileges on the topics covered. To purchase these reports or for information about
the Networking Quarterly program or In-Stat's Communications, Semiconductor,
and Computer Services, contact Dennis Ashton at 602/483-4471, email
dennisa@instat.com.
In-Stat is a full service, high-technology, market research and information company
serving the semiconductor, communications, computer, and multimedia
marketplaces. In-Stat is part of Cahners Publishing Co., the largest publisher of
specialized business publications in the United States. Visit In-Stat Online at
instat.com . (See also: businesswire.com)
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