GartnerGroup's Dataquest Says Cisco Leads the Way in Rapid Growing LAN Switch Market; Dataquest Publishes First Quarter Results for LAN Switches, Routers, and Shared Media Hubs 08:02 a.m. May 21, 1998 Eastern SAN JOSE, Calif.--(BUSINESS WIRE)--May 21, 1998--As the networking industry experiences an on-going migration from shared media hubs to LAN switches, the worldwide LAN switch market surpassed $1.9 billion in the first quarter of 1998, up 64 percent over the first quarter of 1997, according to preliminary statistics from Dataquest, a unit of Gartner Group Inc. (NASDAQ:GART). Cisco Systems is driving the LAN switch market forward, with its switching revenue growing by 132 percent in the first quarter (see Table 1). "The LAN switch is the bright spot in an otherwise soft networking market," said John Armstrong, director and principal analyst for Dataquest's Networking Worldwide program. "Cisco continues to show strong momentum, thus providing a continuing challenge for its competitors." Table 1 Preliminary Worldwide LAN Switches Revenue Estimates for First Quarter 1998 (Millions of U.S. Dollars)
Q1/98 Q1/98 Market Q1/97 Q1/97 Market Growth Company Revenue Share (%) Revenue Share (%) (%) ----------------------------------------------------------------- Cisco 813.2 42.4 349.7 30.1 132.5 3Com 266.8 13.9 190.1 16.3 40.3 Bay Networks 192.6 10.1 107.4 9.2 79.3 Cabletron Systems 192.6 10.1 236.2 20.3 -18.5 Others 450.6 23.5 279.3 24.0 61.3 Total 1,915.8 100.0 1,162.7 100.0 64.8
Note: Total percentages may not add to 100 percent due to rounding. Source: Dataquest (May 1998) The router industry grew 8.6 percent in the first quarter of this year with revenue approaching $1.3 billion, while the shared media hubs market declined 22 percent with revenue at $663 million. Cisco was the market leader in the router industry, maintaining 70.6 percent market share in the first quarter of 1998, but their market share declined from the first quarter of 1997 when its market share was at 73 percent (see Table 2). Fujitsu showed the strongest growth among the top 4 vendors as it grew 220 percent over the first quarter of 1997. Table 2 Preliminary Worldwide Router Revenue Estimates for First Quarter 1998
(Millions of U.S. Dollars)
Q1/98 Q1/98 Market Q1/97 Q1/97 Market Growth Company Revenue Share (%) Revenue Share (%) (%) ---------------------------------------------------------------- Cisco Systems 909.0 70.6 865.6 73.0 5.0 Bay Networks 109.8 8.5 130.8 11.0 -16.1 Fujitsu 50.2 3.9 15.7 1.3 220.0 IBM 38.0 3.0 19.4 1.6 96.0 Others 179.9 14.0 154.0 13.0 16.8 Total 1,286.9 100.0 1,185.5 100.0 8.6
Note: Total percentages may not add to 100 percent due to rounding. Source: Dataquest (May 1998)
While the worldwide shared media hubs market declined in the first quarter, 3Com remained the No. 1 vendor in the marketplace as its revenue market share grew to 31.8 percent, up from 23.5 percent in the first quarter of 1997. Bay Networks, Cabletron Systems, and Hewlett-Packard rounded out the top 4 vendors in the shared media hubs market with 21.3, 5.7, and 4.9 percent market share, respectively. Additional market statistics are available in the Dataquest Alert titled "Router, LAN Switch, and Shared Media Hub Market Performance for First Quarter 1998." This report provides preliminary market statistics including market size by product category, market share for major segments, and sales broken down by region. This report is produced by Dataquest's Networking Worldwide program. This program focuses on the developing LAN and WAN technologies and products that are driving the growth of the networking industry. Additional information on this program can be found on Dataquest's Web site at gartner.com.
To purchase these reports, or to subscribe to Dataquest's Networking Worldwide 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. Dataquest, a unit of Gartner Group Inc., has been providing global market research and consulting services for the high-technology and financial communities since 1971. Dataquest provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the 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, consulting and training. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community with 11,086 client organizations served by analysts in 80 locations worldwide. Additional information about the company is available on the Internet at gartner.com. o~~~ O |