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To: Dolfan who wrote (31226)	5/25/1999 10:14:00 AM
From: Moonray	Respond to of 45548

GartnerGroup's Dataquest Says LAN Switches Market Drives LAN Industry to $5.8 Billion in First Quarter of 1999 BUSINESS WIRE - 08:06 a.m. May 25, 1999 Eastern SAN JOSE, Calif.--(BUSINESS WIRE)--May 25, 1999--The router and local area network(LAN) switches segments continued to drive growth in the worldwide LAN market during the first quarter of 1999, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE:IT). LAN revenue grew to $5.8 billion in the first quarter of 1999, an increase of 19.1 percent over the same period last year. The router market grew 38.3 percent, with revenue reaching $1.8 billion, while the LAN switches market grew to $2.6 billion, up from $1.9 billion a year ago. "Far from being supplanted by switches, the demand for routers of all kinds continues to show healthy increases across the board," said John Armstrong, vice president of Dataquest's Networking and Remote LAN and Internet Access Worldwide programs. Cisco Systems continued to dominate the worldwide router market, with revenue reaching $1.4 billion, an increase of 53.3 percent over the first quarter of 1998 (See Table 1). Nortel Networks remained in second place with revenue of $139 million. 3Com jumped into third place with 45 percent growth. Table 1 Preliminary Worldwide Router Revenue Estimates for First Quarter 1999 (Millions of Dollars) Company Q1/98 Q1/98 Market Q1/99 Q1/99 Market Growth Revenue Share (%) Revenue Share (%) (%) Cisco Systems 909 69.0 1,394.20 76.5 53.3 Nortel Networks 109.8 8.3 138.8 7.6 26.4 3Com 38.4 2.9 55.7 3.1 45.0 Fujitsu 40 3.0 43.6 2.4 9.0 IBM 38.4 2.9 35.8 2.0 -0.6 Others 60.5 4.6 35.0 1.9 -4.2 Total Market 1,316.90 100.0 1,821.80 100.0 38.3 Source: Dataquest (May 1999) Fast Ethernet and Gigabit Ethernet remained the strongest growing segments within the LAN switches market, while 10-Mbps Ethernet continued to struggle as its revenue declined 44.2 percent. Gigabit Ethernet grew tenfold with revenue of $211.4 million, up from $18.5 million in the first quarter of 1998. $1.7 billion in Fast Ethernet switch equipment was shipped in the first quarter of 1999, and Dataquest expects this market to reach $7.5 billion by the end of 1999. Additional market statistics are available in the Dataquest Alert titled "Networking Markets Off to a Strong Start for the Year." This report provides preliminary results including market size by product category. Final first quarter 1999 market statistics, including quarterly forecasts and detailed market share tables, will be available in a few weeks. 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 www.dataquest.com/dq/static/offer/programs/netwwwds19981130.html. To subscribe to this 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. GartnerGroup's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global 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, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at gartner.com . Copyright 1999, Business Wire o~~~ O