GartnerGroup's Dataquest Says Remote Access Concentrators Market Surpassed $494 Million in the Second Quarter
08:21 a.m. Aug 24, 1998 ET
SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 24, 1998--
As businesses increased their reliance on networking capabilities, the worldwide remote access concentrators market experienced steady growth in the second quarter of 1998, with revenue reaching $494.1 million, up 6.8 percent from the second quarter of 1997, according to preliminary market statistics from Dataquest Inc., a unit of Gartner Group, Inc. (NASDAQ:GART).
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," said Ritu Saini, market
research analyst for Dataquest's Remote LAN and Internet Access
Worldwide program.
"ISPs are anticipating these changes and beefing up their networks
with equipment that can offer the desired levels of service and
reliability."
Cisco Systems moved into the No. 1 position in the second quarter of
1998 (see Table 1). Ms. Saini said Cisco is leveraging its existing
installed base of network equipment, and service providers tend to
continue their relationship with the company because of its range of
products.
Table 1
Preliminary Worldwide Access Concentrators Factory Revenue Estimates
for Second Quarter 1998 (Millions of U.S. Dollars)
Q2/98 Q2/98 Market Q2/97 Q2/97 Market Growth
Company Revenue Share (%) Revenue Share (%) (%)
Cisco 139.0 28.1 72.0 15.6 93.1
Ascend 133.3 27.0 161.0 34.8 -17.2
3Com 132.3 26.8 161.5 34.9 -18.1
Bay Networks 27.6 5.6 20.0 4.3 38.0
Livingston 20.4 4.1 17.6 3.8 15.9
Others 41.6 8.4 30.4 6.6 36.8
Total 494.1 100.0 462.5 100.0 6.8
Note: Columns may not add to the totals shown because of rounding. Source: Dataquest (August 1998)
"New applications and technologies are beginning to see the light of
day with voice and data convergence," said Ms. Saini. "Several of the
top vendors, including Ascend, Cisco, and 3Com, are offering SS7
capability on their concentrators, and ISPs and network service
providers (NSPs) have started deploying these boxes."
The remote access server market declined nearly 38 percent in the
second quarter of 1998 (see Table 2). Bay Networks was the only
top-tier vendor to post positive growth, increasing its remote
access server revenue 28.4 percent in the quarter.
Table 2
Preliminary Worldwide Factory Revenue Estimates of Remote Access
Servers for Second Quarter 1998 (Millions of U.S. Dollars)
Q2/98 Q2/98 Market Q2/97 Q2/97 Market Growth
Company Revenue Share (%) Revenue Share (%) (%)
Cisco 24.0 29.5 26.0 19.9 -7.6
Bay Networks 12.2 15.0 9.5 7.3 28.4
3Com/U.S. Robotics 10.8 13.3 17.8 13.6 -39.3
Shiva 8.8 10.8 15.1 11.5 -41.7
Ascend 4.2 5.2 15.0 11.5 -72.0
Others 21.4 26.3 47.4 36.2 -54.9
Total 81.4 100.0 130.8 100.0 -37.8
Note: Columns may not add to the totals shown because of rounding.
Source: Dataquest (August 1998)
Additional information on this market is available in Dataquest's Remote
LAN and Internet Access Worldwide program. This program provides
comprehensive statistics and insightful analysis to help industry
executives track trends and market dynamics to target new business
opportunities. Additional information on this program is available on
Dataquest's Web site at
dataquest.com.
For more information about this program, please call 800/419-DATA, or
408/468-8009. More information about Dataquest's programs, descriptions
of recent research reports, and full text of press releases can be
found on the Internet at dataquest.com.
Additional analysis on the telecommunication industry will be discussed
during the upcoming GartnerGroup Symposium/ITxpo 98. This conference is
the IT industry's largest, most comprehensive, and prestigious
strategic planning event. GartnerGroup Symposium/ITxpo 98 will be held
Oct. 12-16 in Lake Buena Vista, Fla.; Oct. 21-23 in Tokyo, Japan;
Oct. 28-30 in Brisbane, Australia; and Nov. 2-5 in Cannes, France.
For more information, call 1-800-778-1997 or 1-203-316-6757, e-mail
ashley.pearce@gartner.com or visit the GartnerGroup Web site at
www.gartner.com/events.
GartnerGroup's Dataquest is the recognized leader in providing the high-
technology and financial
communities with market intelligence for the semiconductor, computer
systems and peripherals,
communications, document management, software, and services sectors of
the global information
technology industry.
As the world's leading authority on IT, GartnerGroup provides clients
with a wide range of products and
services in the areas of IT advisory services, measurement, research,
decision support, analysis, and
consulting.
Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is
at the center of a global
community with more than 11,000 client organizations served by analysts
in 80 locations worldwide.
Additional information about the company is available on the Internet at
gartner.com.
Copyright 1998, Business Wire
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