Cisco's Market Share is Increasing:
The Sept. 23 issue of Communications Week had an article about
the rising market share of Cisco, and I'll summarize it here
for all.
The article said that Cisco's overall market share went up to
60.18% in the first half of '96, compared to 44.53% in the first
half of '95. This is according to the The Dell'Oro Group, a
Portola Valley, CA research company.
Cisco's share of the high end router market increased to 84% in
the second quarter of '96, compared to 75.9% a year ago,
and it increased it's share of all
segments of the market - the high end, midrange, low end and SOHO
routers.
The big loser during the first half was Bay Networks, whose share
dropped to 15.9% from 20.56%. If the SOHO (small office, home
office) segment, in which Bay did not compete in 1995, is excluded,
Bay's share of the high-end, midrange, and low end router segments
dropped even more, falling to 14.8% in the second quarter of '96
from 21.6% after the first half of '95. Cisco's share of those
three segments rose to 62.9% from 45.8%.
In the high end segment, Bay's share dropped to 8.7% from 16.3%.
The only other significant player in this segment, Digital Equip.,
saw it's share increase to 1.4% from 1.3%.
In the midrange market, Cisco's share rose to 43.7% from 21.5%,
while Bay, 3Com, IBM, and Motorola all saw their portions shrink.
Bay fell to 25.6 percent from 33.3%, 3Com dropped to 5.9% from
8.1%, Motorola lost 1% to 12.2%, and IBM dropped to 1.4% from
4.7%.
The pattern was repeated in the low-end router segment, with the
exception that IBM raised its share to 6.9% from 5.9%. Cisco's
share was 64.6%, up from 46.9%. Bay dropped a point to 8.1%;
3Com fell to 4.4% from 7%; and Digital dropped to 4.2% from
6.3%.
In the SOHO routers segment, Cisco accounted for 28% of the market
in the second quarter of '96, up from 19.8% a year ago. 3Com
raised its share to 3.9% from 2.3%, and Bay captured 1.8% this
year. Ascend saw its share drop to 13% from 16.4% of this segment.
Some food for thought.
Frank |
