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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Waldeen who wrote (30164)	4/21/1999 11:16:00 AM
From: MARK C.	Respond to of 90042

Looks like the place to be over the next 4 years or so. MarkC Core Switch & Router Forecast (Revenues - $ Millions) 1998 $169 1999 $455 2000 $1,289 2001 $2,380 2002 $4,051 2003 $5,531 The new study, "Core Switching & Routing: Market Technology & Forecast," released as part of RHK's Core Switching & Routing service shows that the growth of the core switch and router market will continue as service providers deploy units to keep up with Internet traffic growth. In the early years (1999-2000) growth will result from: -- Demand for higher-capacity routers -- Demand for higher-speed interfaces -- Deployment of OC-48 interfaces in 1999 -- Rapid deployment of DS3 and 0C-3 services to enterprise customers -- DSL and cable modems In the latter years (2001-2003) the market will increase due to the following factors: -- Substitution of core switches and routers for cell and circuit switching equipment -- More integration of SONET features The study further addresses how network consolidation will shape the opportunity for new switches and routers. As service providers look to streamline their operations and economics, demand will shift from multiple OSI layers to a new era of multi-layer systems. This movement will prompt new entrants to enter the marketplace and vie for leadership positions. "Although many believe that network traffic will eventually be consolidated onto a single IP-over-optics infrastructure, RHK argues that many service providers will find keeping two functionally different backbones -- one entirely IP-centric and the other based on ATM, will result in a more efficient network," remarks Joe Skorupa, director of RHK's Switching & Routing service. The study also reveals the market share numbers for core ATM switches. Ascend Communications extended its market leadership position by capturing 33% of the market in 1998. Cisco increased its market share from 21% in the first half of the year to 24% for the year, overtaking Newbridge, who dropped from 26% in the first half to 24% for the year. FORE, NEC, Nortel and others made up the remaining 19% of the core ATM switch market.