Yankee Group Confirms Newbridge Networks Leads Overall
ATM Wide Area Network (WAN) Market
APRIL 29, 1999
KANATA, ONTARIO--Newbridge Captures 26 Percent of $1.5 Billion ATMMarket
Newbridge Networks (NYSE: NN; TSE: NNC) today announced that the
Yankee Group is the latest research company to confirm that
Newbridge continues to lead the overall asynchronous transfer mode
(ATM) wide area network (WAN) switching market. In its recently
published 1999 ATM WAN Switch Market Analysis report, the Yankee
Group estimates Newbridge captured 26 percent of the $1.5 billion
ATM WAN switching market in 1998.
The research findings also project significant growth for ATM WAN
switches over the next five years, with the overall market
experiencing a compound annual growth rate of 36 percent,
resulting in the market reaching approximately $7 billion by 2003.
Within this market, core switches and service switches are
expected to experience compound annual growth rates of 52 percent
and 34 percent respectively.
The Yankee Group attributes this growth to several industry
trends, most notably the convergence of voice and data
technologies. According to the Yankee Group, in order to be
competitive in 1999 and beyond, service switches must contain
enhanced voice capabilities.
Earlier this month, Newbridge Networks took the lead by developing
a networking solution that will accelerate the convergence of
voice and data services over an integrated, flexible broadband
network architecture when it joined TeleHub Technologies
Corporation (TTC) and created TeraBridge Technologies. The venture
is designed to develop scalable, flexible broadband network
solutions for both established and next generation carriers.
"Actually delivering a full-featured multiservice switch that
provides toll-quality voice and implements all ATM classes of
service will certainly be a key differentiator for success in the
market," said Jennifer M. Pigg, Senior Vice President, the Yankee
Group. "The leading-edge, targeted solutions being developed by
Newbridge, as well as the Company's renewed focus on its core
product line, will enable Newbridge to remain a strong global
leader in the growing ATM market."
As voice and data convergence becomes a reality, the Yankee Group
believes carriers will upgrade their networks to accommodate voice
over ATM and Internet protocol (IP) networks.
Several leading research firms concur that the Company's
leadership in the global ATM market can be attributed to the
Newbridge(r) portfolio of products, which include the industry's
largest selling ATM switch, the MainStreetXpress(tm) 36170
Multiservices Switch. The Company continues to evolve the
MainStreetXpress 36170 Switch to meet the present and future needs
of more than 325 service provider customers worldwide.
The MainStreetXpress 36170 Multiservices Switch offers a broad
range of interfaces and service offerings including native cell
relay, frame relay, advanced private line, local area network
(LAN) internetworking, IP and integral broadband wireless.
Newbridge Networks' leadership position in the global ATM market
has been recently confirmed by the following major research firms:
- International Data Corporation confirmed in its ATM and Frame
Relay Switching Market Review and Forecast, 1997-2002, that
Newbridge continues to lead the worldwide market for ATM edge and
enterprise switches with 27.5 percent market share;
- Dataquest, a Gartner Group Company, in its 1998 North American
WAN Market Share and Forecast report, identified Newbridge
Networks as the leader in revenues and shipments of ATM backbone
switches in North America, with a 34.4 per cent market share;
- Earlier this year, Dataquest also confirmed that Newbridge
leads the ATM and frame relay WAN market in Central and Eastern
Europe, with a 46 percent market share in the ATM market and a 29
percent share in the frame relay market;
- Dataquest also confirmed earlier this year that Newbridge leads
the multiservice ATM and frame relay WAN switching market in
Europe overall with a 27.5 percent market share;
- Vertical Systems Group confirmed in a report that Newbridge is
the global market share leader in delivering ATM solutions for
carriers and Internet service providers (ISPs) with 22.3 percent market share.
The Yankee Group, (a subsidiary of Primark Corporation), is an
information technology market research and consulting firm
specializing in helping users and vendors link their technology
strategy to their business strategy. Established in Boston,
Massachusetts in 1970, it has built a solid reputation worldwide
for analysis of the key issues. Yankee Group clients number more
than 700 and represent a wide range of businesses and industries.
Each year, the Yankee Group sponsors numerous technology-related
conferences around the world. News and information are available
at www.yankeegroup.com.
Newbridge Networks designs, manufactures, markets and services
networking solutions to organizations in more than 100 countries.
The Company leverages its relationship with a growing family of
Newbridge Affiliate companies and strategic alliances with Siemens
and 3Com Corporation to deliver seamless, end-to-end solutions.
Newbridge customers include the world's 300 largest
telecommunications service providers and more than 10,000
corporations, government organizations and other institutions.
Founded in 1986, the Company employs more than 6,000 people on six
continents. News and information are available at www.newbridge.com.
Newbridge and logo are registered trademarks of Newbridge NetworksCorporation.
MainStreetXpress is a trademark used by the Siemens / Newbridge
alliance for comprehensive solutions in broadband ommunication.
No agency relationship, partnership, or joint ownership of a legal
entity is to be inferred or implied by the term alliance. |
