Revenue in the enterprise router manufacturer market reached $1bn worldwide in the first quarter of 2006, according to a report from Infonetics Research.
The analyst’s Enterprise Routers report called the growth “slow but steady”. It also forecast the market to grow to $4.8bn by 2009.
Matthias Machowinski, directing analyst of enterprise voice and data at Infonetics Research, said: “The report showed a little bit of weakness, but Q1 is usually a bit down. Year-on-year, sales [of enterprise routers] are higher as organisations continue to upgrade their ageing infrastructure.”
Machowinski added that despite strong overall demand for networking equipment, revenue levels remain flat because of continued pricing pressure.
“Cisco is still the top vendor and that won’t change anytime soon,” he said. “Huawei is becoming very strong, and it is now in fourth position worldwide. Expect to see more of Huawei.”
Tony McKenzie, sales manager of the networking division at distributor Mayflex, said: “The channel is evolving, and firms will need to readdress business models. Margins in networking have been eroded. The channel has to add value and offer services.”
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