Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (4323)	2/27/1998 8:21:00 AM
From: Liatris Spicata	Read Replies (2) \| Respond to of 6980

The following is adapted from Thompson, which reported on a Dell'Oro study on hub, switch and and remote access markets. The study was released last week. Could someone comment on Fixed Configuration vs. Modular switches? For example, how does each category fit into the overall market for switches, what is the approximate market share of each? ------------------------------------------------------------------- In Ethernet switching, Bay posted a strong showing in Fixed Configuration switches, while Cisco continues to dominate Modular Switches. In Remote Access Concentrators, Bay grew substantially off of a small revenue base, and Cisco also gained market share. The market for routers continues to be dominated by Cisco, though the router market overall has grown only 10% since December 1996 The Switched Ethernet market grew only 4.5% from the September quarter, down from the 20% sequential growth rate in the prior quarter; however, there were some notable shifts in market share among the participants. In the Modular Switched Ethernet market, 3Com grew 9.6% sequentially, picking up 0.5 points of market share, and Xylan grew 8.5% sequentially; however, Cisco continues to dominate this segment, with 53% of the market, having picked up 10 points of share in the last year. In Fixed Configuration Ethernet Switching, Bay grew 30% from the September quarter and is now tied with 3Com for market share leadership while Cisco saw its sales decline 14% sequentially. Cisco had been the market share leader in this category as recently as the June 1997 quarter, but is now firmly in third place with 14.7% of revenue. In the Remote Access Concentrator market, revenues were up 3.8% sequentially, and while 3Com and Ascend continue to claim the #1 and #2 market share positions, respectively, both vendors lost share to Cisco this quarter, which saw its Remote Access Concentrator revenue jump 38% sequentially. Cisco now holds the third-place position with 20.5% of the market. Bay more than tripled its Remote Access Concentrator sales, from $5.9 million in the September quarter to $20 million in the December quarter and commands 4.4% of the market. Cisco continues to dominate all segments [of the router market], with 80% of the high-end market, 62.4% of the midrange market, 65.7% of the low-end market, and 30.8% of the SOHO router market. In the December quarter, Cisco gained share in high-end routers and lost share or stayed even in the other three categories. The SOHO router market, while the smallest segment with $157 million in sales in the December quarter, is also the fastest growing, posting 18.7% sequential growth and 50.3% growth from 1996. While Cisco is the market share leader in this category, the SOHO router market is much more fragmented than the other segments, and Cisco needs to build a greater indirect channel presence if it wants to dominate this segment in the same fashion as the others. -------------------------------------------------------------------- FWIW, I bowed out of CSCO yesterday at 66 1/2. Looking for some good networking/communications ideas, but I've got enough wrapped up in BAY at the moment.