Press Release
For Immediate Release
For
more information contact:
Alice Heiman
VP Marketing
602-287-9097
Latest Generation of Service Provider Routers Enable Carriers to Address Profit Woes
Synergy Research Group’s latest report forecasts Service Provider Routers to increase to $7.7 billion dollars by 2009
Scottsdale,
Arizona –
Synergy’s latest report “Q2 2004
Worldwide Router Forecast Report” is predicting Service Provider Routers
will reach 52.3% of total Router revenue by the end of 2004. Carriers quickly
moving to build their networks around IP will drive this change in the mix of
Router sales. The rapid ascent of companies like Vonage represents a loud wake
up call to Carriers - it is imperative for Service Providers to understand the “network economics” of a bit or a packet and how
best to leverage IP technology to address concerns of competitiveness and
profitability.
Such strategic planning by
the Carriers is driving the deployment of highly-functional networking devices
such as IP Edge Routers, which SRG is forecasting to grow to a quarter of all
Router sales by 2005 and further to represent a third of all Router sales by
2009. Cisco, Juniper, Nortel, Redback and Riverstone are in very strong
positions to benefit from these capital investments. What’s more, technological
requirements continue to change rapidly, thus creating windows of opportunity
for innovative start-ups.
Additionally,
SRG has identified another exciting Router category, which will continue to
redefine the segment and provide further growth to the market: Multi-Service
Edge (MSE) Routers. These routing platforms
provide converged Layer 2 and Layer 3 services at the edge of a Service
Provider’s IP/MPLS network enabling the delivery VPN, VoIP, and Security
services, among others.
“SRG believes the Router market is
being strongly driven by Carriers seeking to build networks that enable them to
be both competitive and profitable,” said Ray Mota, Chief Analyst at Synergy
Research Group. “However, SRG’s forecasts do come with a note of caution - while Carrier revenue has been increasing, profit
margins have consistently been decreasing quarter-over-quarter; if Carriers
make the right investments around IP and execute successfully, SRG believes
they can turn this negative trend around; however, if they fail the
consequences could be dire and lead to another reversal in CapEx spending.”
The Q2 2004 Worldwide Router
Forecast report provides quarterly (four quarters) and annual (five years)
forecast data in the following areas:
·
Small Office
Routers
·
Mid-Range
Routers
·
High-End
Enterprise Routers
·
IP Routers (Edge
Aggregation)
·
Broadband
Aggregation
·
IP Services
·
Core Routers
This
report is available for immediate purchase at www.srgresearch.com or 602-287-9097.
About
Synergy Research Group
Synergy Research Group (SRG)
is a market research firm, which specializes in quarterly market analysis,
market share, forecasting, and strategic consulting. SRG offers a wide breadth
of market research services to the equipment manufacturing, semiconductor, and
financial communities. Synergy can be found at www.srgresearch.com
The
contents of this press release represent SRG’s interpretation and analysis of
statistics and information collected from authorized company representatives,
industry sources, and SRG estimates. SRG does not guarantee the accuracy or
completeness of the statistics or information contained in this release.