Cisco No.1 in Internet concentrators in Q2--report
Monday August 24, 10:51 am Eastern Time
SAN JOSE, Calif., Aug 24 (Reuters) - Dataquest said its preliminary second quarter data confirmed that Cisco Systems Inc. had moved into the top spot in the market for remote access concentrators, the equipment used by Internet service providers to handle incoming calls from computer users.
Cisco showed explosive growth during the last year, nearly doubling its market share to become No. 1 in the hotly contested Internet concentrator business, dislodging former leaders 3Com Corp. (COMS - news) and Ascend Communications Inc. (ASND - news)
Dataquest, a unit of Gartner Group Inc., estimated Cisco revenues for the second quarter at $139 million, 93.1 percent above the year-ago second quarter's $72 million. Its market share grew to 28.1 percent from 15.6 percent.
Ascend revenues fell to an estimated $133.3 million, down 17.2 percent from the year-ago quarter's $161 million, while 3Com revenues were $132.3 million, down 18.1 percent from $161.5 million.
As a result Ascend ranked No. 2 during the second quarter with 27 percent while 3Com was close behind at No. 3 with 26.8 percent, according to Dataquest.
The market research firm said that based on preliminary data worldwide, the remote access concentrator market grew 6.8 percent year-over-year to $494.1 million in the second quarter.
Dataquest analysts project healthy growth for the remote access concentrator market as companies rely on the Internet to increase productivity.
''The profile of the average Internet user is undergoing a metamorphosis from novice to more intelligent, in which users have started demanding more from the network,'' Dataquest analyst Ritu Saini said in a statement announcing the results.
As a result, Internet service providers (ISPs) are beefing up their systems for handling more sophisticated Internet traffic, which translates into new demand for remote access concentrators which are used at the core of ISP networks.
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