To: Tim Luke who wrote (19419 ) 10/28/1997 12:47:00 PM From: Glenn D. Rudolph Respond to
Dataquest Reports 12 Percent of Total Network Equipment Revenue Was Sold Into the Internet in 1996
Business Wire - October 28, 1997 08:06
%DATAQUEST %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %TELECOMMUNICATIONS %INTERACTIVE %MULTIMEDIA %INTERNET %PRODUCT V%BW P%BW
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 28, 1997--
New Dataquest Program Examines the Internet Infrastructure
Industry
As the Internet continues its explosive growth, network equipment vendors are reaping substantial rewards, according to a new report by Dataquest. Network equipment sold into the Internet in 1996 surpassed $2 billion, or nearly 12 percent of the total data network equipment market, which approached $18 billion last year.
The leading products driving the Internet infrastructure market are routers and access equipment, which accounted for 59 percent and 25 percent of Internet infrastructure revenue in 1996.
"The community of network equipment vendors with significant penetration into the Internet is still relatively small, with individual product segments often dominated by just one or two players," said John Coons, director and principal analyst for Dataquest's Internet Infrastructure program. "But now, many vendors are actively targeting this market, and with some undoubtedly finding success, the number will increase sharply during the next year."
Not surprisingly, Cisco and Ascend lead the pack of Internet equipment vendors with a combined revenue share of nearly 75 percent of the $2 billion total.
"There are a dozen or more start-ups about to enter the market with an array of new multigigabit routing platforms to share the stage with today's Cisco GSR and Ascend GRF 'go fast' routers," said Coons. "These devices will provide Internet Protocol (IP) over ATM or directly over SONET at OC-12 and even OC-48 speeds, with brand new technologies ranging from hyperspeed address lookup mechanisms to processors fully capable of enforcing complex policies at these breakneck speeds."
Additional information about this marketplace is available in the Dataquest Perspective titled, "Internet Infrastructure Network Equipment Market Statistics." This Perspective summarizes market size and vendor market share estimates for worldwide network equipment shipments specifically to Internet service providers (ISPs) and backbone operators for use within their service-provisioning infrastructures.
This Perspective is also available to subscribers of Dataquest's Internet Infrastructure North America program. This program provides data, advice, and analysis on the structure and growth of networks to support the Internet. Dataquest's program provides an understanding of exactly what the Internet currently consists of, such as the installed base of equipment, the size, market shares, and growth rates of the various Internet equipment providers, as well as the nature of the ISP equipment resale channels.
To purchase the Perspective, or to subscribe to Dataquest's Internet Infrastructure North America program, please call 800/419-DATA. 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 .
Dataquest is a 26-year-old global market research and consulting company serving the high-technology and financial communities. The company provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Dataquest is a Gartner Group Company.
CONTACT: DataQuest
Tom McCall, 408/468-8312
tom.mccall@dataquest.com
