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Stellar Quarter for Cisco as US Operators Open Their Wallets

(May 17, 2012)

RENO, NV -- (Marketwire) -- 05/17/12 -- Data just released by Synergy Research Group shows that Q1 vendor revenues for service provider routers and carrier Ethernet were down 6% sequentially and down marginally year on year -- with Cisco being the only vendor to buck the overall market trend. Cisco's Q1 revenues in this segment were 2% up on Q4 2011, while all other vendors experienced sequential declines. Cisco's market share jumped to 56% in the quarter, while it averaged 50% for 2011. Alcatel-Lucent can have some reasons to be cheerful; while its revenues dropped off from Q4, they were up year-on-year (albeit relative to a poor Q1 in 2011). Alcatel claimed 17% of the Q1 market, slightly up on its overall 2011 market share; it also maintained its number 2 ranking for the second straight quarter, keeping Juniper pegged third. One positive indicator for Juniper was that sales did bounce back strongly in North America after a very soft fourth quarter.

One reason for Cisco's strong performance lies in the regional mix of the market in Q1. Cisco's share of the North American market is typically some ten percentage points up on its share of the APAC and EMEA markets, and Q1 spending in North America spiked sharply -- it was up 13% on the first quarter of 2011. Meanwhile, as North America grew, spending in the other regions dropped off. North America accounted for 47% of the worldwide market in the quarter, with Cisco grabbing a 63% share of those North American revenues.

"We are used to seeing seasonal fluctuation in the market but the swings in this quarter were particularly strong. This was driven by significant Service Provider spending in the US, where networks are running hot," said Jeremy Duke, Founder & Chief Analyst, Synergy Research Group. "These regional swings played out well for Cisco. But it must also be said that Cisco and its key products are performing well and this is helping it to gain market share from its main competitors."

About Synergy Research Group


Synergy Research Group (www.srgresearch.com), a strategic partner of TeleGeography (www.telegeography.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, IMS, NGN, 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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