Enterprise Spending Bounces Back in Q2 as Cisco Remains Dominant

RENO, NV, September 9, 2013

New Q2 data from Synergy Research Group shows that across six key enterprise infrastructure market segments, vendor revenues grew 1.5% relative to the second quarter of 2012 and grew 6.2% from the low experienced in the first quarter of 2013. Aggregated revenues from the six markets reached $11.3 billion, giving a total of $44.7 billion for the last four quarters combined. Ethernet switching comprises by far the largest segment of the enterprise market and revenues here grew marginally by less than 1% year on year, while WLAN infrastructure saw by far the highest growth rate at 17%. The enterprise voice market remains in the doldrums, while telepresence continues to suffer due to ongoing aggressive price competition.

Cisco remains the market leader in all six segments with an aggregated Q2 market share of 53.5%, slightly down on the 54.0% achieved in calendar year 2012. The number two ranked vendors across the five segments are HP (in both Ethernet switching and routers), Avaya (enterprise voice systems), Microsoft (UC applications), Aruba (WLAN) and Polycom (telepresence). Vendors who have been achieving steady market share growth in these highly competitive markets include Microsoft (UC applications and enterprise voice), IBM (UC applications), Juniper (routers), ShoreTel (enterprise voice), Huawei and Vidyo (both in telepresence).

“Beyond Cisco, which is clearly in a league of its own, the most notable achievement in the enterprise markets has been the rise of Microsoft” said Synergy Research Group’s founder and Chief Analyst Jeremy Duke. “Despite the tough competitive and economic environment Microsoft has been growing its UC applications revenues by around 30% annually and its enterprise voice revenues by over 50%. In UC applications it has clearly taken over from Avaya as the main challenger to Cisco.”