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Cisco Outperforms Carrier Infrastructure Market in Q3

(November 17, 2011)

RENO, NV -- (Marketwire) -- 11/17/11 -- Synergy Research Group announces the publication of the 3Q11 Carrier Infrastructure Market Share report. This report provides quarterly market shares for Service Provider Core Routers, Edge Routers, and Carrier Ethernet Switches.

The third quarter of 2011 saw a 5.3% sequential decline in carrier infrastructure revenues, representing a 0.5% year-on-year decline. But even as the market dropped off, Cisco had a strong quarter and grew its revenues on both a sequential and year-on-year basis. That resulted in a big improvement in Cisco's market share, growing from 48.7% in 2Q11 to 52.9% in 3Q11. After a drop off in late 2010, Cisco has now improved its market share in each of the last three quarters.

"This was a really strong quarter for Cisco and is a result of broad-based success across its core and edge portfolios. In the third quarter their revenue growth beat the market trend across all five major product segments and in three of the four regions," said Jeremy Duke, Founder & Principal Analyst, Synergy Research Group. "Cisco can be particularly pleased with its performance in the Carrier Ethernet segment where its revenue grew 20% from the previous quarter and reached an all-time high for the company."

The other leading vendors all saw their market share decline in the quarter and have to look to longer-term trends for solace. While Juniper's carrier infrastructure revenues were the lowest since the third quarter of last year, it can still point to year-on-year growth in each of the last four quarters, resulting in an impressive 22% increase in annualized revenues. Juniper's success is founded on its modular architecture approach and a strong focus on Mobile and Cloud Computing. Alcatel-Lucent is in a similar situation, with a substantial sequential drop in revenues and market share but aggregated revenues from the last four quarters that easily surpass those from the previous four; it is finding sustainable growth in its 100GE IP/Optical upgrade strategy and Video/CDN focus.


Huawei meanwhile is struggling to find good news. Its Q3 revenues dropped off substantially and its revenues from the last four quarters came in slightly lower than the previous four. However, Huawei continues to develop its presence outside of China and has entered new markets in Australia, Japan, and Korea.

About Synergy Research Group

Synergy Research Group (www.srgresearch.com) provides market intelligence, analytics, and strategic consulting services to the networking and telecom industries. For over a decade, Synergy has been a respected leader for quantitative analysis with a focus on emerging technologies, being the first to track IP Telephony and VoIP equipment. Synergy Research Group delivers quarterly data and analytical web-based tools with a comprehensive set of syndicated research services covering UC Applications, Enterprise Voice, Data Center, Mobile Internet Infrastructure, Videoconferencing & TelePresence, Network Security, Cloud Communication & Collaboration, Content Delivery Networks, IPTV, Routers, Ethernet Switching, Service Provider VoIP, SAN, Smart Grid, WLANs, and emerging IP communication technologies.

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For more information:
Heather Gallo
Synergy Research Group
+1 775-852-3330 ext 101
Email Contact


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