Despite a little bit of a slowdown on the service provider front, the worldwide switching and router market keeps minting fortunes for some technology companies.
The market generated over $10 billion in revenues during the second quarter (Q2) of 2016 and $41 billion over the past 12 months, a 1 percent gain on a rolling annualized basis, according to the latest figures from Synergy Research Group. And once again, a familiar networking equipment maker from San Jose claimed the top spot.
In total, Cisco closed the quarter with more than half of the switching and router market (53 percent). The company claimed 68 percent of the enterprise router and 40 percent of the service provider segments. Cisco was also responsible for nearly 60 percent of the growing enterprise Ethernet switch sales during Q2.
“Cisco’s switching and routing revenues in the quarter were just a tad on the soft side, thanks mainly to a drop off in service provider routers, but the facts are that the overall market remains both huge and relatively stable, and Cisco remains a totally dominant force,” said John Dinsdale, chief analyst and research director at Synergy, in a research note sent to Datamation. “Other vendors are trying to chip away at Cisco’s market position and SDN/NFV [software-defined networking/network function virtualization] remains a potentially disruptive market force, but right now it continues to be pretty much business as usual.”
Earlier this month, Cisco reported fourth quarter (Q4) fiscal 2016 revenues of $12.6 billion, a 2 percent year-over-year increase, and $48.7 billion for the full year. Routing revenue in Q4 dipped 6 percent to $1.9 billion while switching revenue climbed 2 percent to $3.8 billion. Cisco also announced plans to trim its workforce by 5,000 workers, or 7 percent of the company’s global headcount, as the company pursues new opportunities in markets for Internet of Things (IoT), cloud computing and next-generation data center technologies, said Cisco CEO Chuck Robbins.
In Cisco’s massive shadow are rivals Huawei, Juniper, HPE and Nokia. Individually, they had market shares ranging between 5 percent and 9 percent.
Accounting for more than 40 percent of worldwide revenues, North America has the biggest appetite for enterprise networking gear, followed Europe, the Middle East and Africa (EMEA), Asia-Pacific (APAC) and Latin America. APAC is the fastest-growing region due to a surge in service provider spending that is benefiting Chinese electronics maker Huawei, said Synergy Research.
Pedro Hernandez is a contributing editor at Datamation. Follow him on Twitter @ecoINSITE.
Huawei’s AI Update: Things Are Moving Faster Than We Think
FEATURE | By Rob Enderle,
December 04, 2020
Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 18, 2020
Key Trends in Chatbots and RPA
FEATURE | By Guest Author,
November 10, 2020
FEATURE | By Samuel Greengard,
November 05, 2020
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 02, 2020
How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 29, 2020
Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 23, 2020
The Super Moderator, or How IBM Project Debater Could Save Social Media
FEATURE | By Rob Enderle,
October 16, 2020
FEATURE | By Cynthia Harvey,
October 07, 2020
ARTIFICIAL INTELLIGENCE | By Guest Author,
October 05, 2020
CIOs Discuss the Promise of AI and Data Science
FEATURE | By Guest Author,
September 25, 2020
Microsoft Is Building An AI Product That Could Predict The Future
FEATURE | By Rob Enderle,
September 25, 2020
Top 10 Machine Learning Companies 2020
FEATURE | By Cynthia Harvey,
September 22, 2020
NVIDIA and ARM: Massively Changing The AI Landscape
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
September 18, 2020
Continuous Intelligence: Expert Discussion [Video and Podcast]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 14, 2020
Artificial Intelligence: Governance and Ethics [Video]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 13, 2020
IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI
FEATURE | By Rob Enderle,
September 11, 2020
Artificial Intelligence: Perception vs. Reality
FEATURE | By James Maguire,
September 09, 2020
Anticipating The Coming Wave Of AI Enhanced PCs
FEATURE | By Rob Enderle,
September 05, 2020
The Critical Nature Of IBM’s NLP (Natural Language Processing) Effort
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
August 14, 2020
Datamation is the leading industry resource for B2B data professionals and technology buyers. Datamation's focus is on providing insight into the latest trends and innovation in AI, data security, big data, and more, along with in-depth product recommendations and comparisons. More than 1.7M users gain insight and guidance from Datamation every year.
Advertise with TechnologyAdvice on Datamation and our other data and technology-focused platforms.
Advertise with Us
Property of TechnologyAdvice.
© 2025 TechnologyAdvice. All Rights Reserved
Advertiser Disclosure: Some of the products that appear on this
site are from companies from which TechnologyAdvice receives
compensation. This compensation may impact how and where products
appear on this site including, for example, the order in which
they appear. TechnologyAdvice does not include all companies
or all types of products available in the marketplace.