Global service provider switching and routing equipment sales grow 23% in 1Q08

IP/MPLS Core and Edge spending grew 33% and 36% respectively over last year

For immediate release, 11 August 2008. Ovum today posted its analysis of global first-quarter 2008 service provider switching and routing equipment sales. Sales in 2Q08 grew to $3.4 billion overall, a 23 percent increase compared to one year ago.

"On a rolling four-quarter basis there were no significant market share movements in 1Q08," said Mark Seery, Vice President, Switching and Routing at Ovum. "Cisco had a particularly strong quarter, while all other major suppliers had good growth as well."

2Q08 highlights for technology-focused market segments

• IP/MPLS core = $818 million, up 33% versus 2Q07
• IP/MPLS edge = $1,785 million, up 36% versus 2Q07
• IP/Ethernet = $626 million, up 7% versus 2Q07
• ATM = $204 million, down 28% versus 2Q07

2Q08 highlights for application-focused market segments

• IP transport and services = $1,798 million, up 34% versus 2Q07
• Ethernet transport and services = $1,305 million, up 23% versus 2Q07
• BRAS = $220 million, down 13% versus 2Q07

2Q08 market share positions (rolling 4Q)

• IP/MPLS total: Cisco (51%), Juniper (20%)
• IP/MPLS core: Cisco (58%), Juniper (31%)
• IP/MPLS edge: Cisco (48%), Alcatel-Lucent (17%), Juniper (15%)
• IP transport and services: Cisco (47%), Juniper (25%)
• Ethernet transport and services: Cisco (57%), Alcatel-Lucent (14%)
• BRAS: Cisco (32%), Juniper (29%), Redback (27%)

- Ends -

Notes for editors

Details of the 2Q08 results and additional analysis have been published by Ovum's Switching and Routing service, which provides consistent quarterly analysis and detailed annual forecasts of equipment sales for North American, European and Asian network operators.

For further information

For more information or to speak with Mark Seery about this research, please contact Maria Di Martino, Public Relations, maria.dimartino@ovum.com, +44 (0) 20 7551 9238 or a member of our global PR team listed below.

About Ovum

Ovum is a global advisory and consulting firm. Its primary activity is providing value-added advisory services and consulting to retained and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

Ovum is part of the Datamonitor Group.

Ovum's PR contacts

EMEA:
Maria Di Martino
Tel: +44 (0) 20 7551 9238
maria.dimartino@ovum.com

North America:
Sara Kaufman
Tel: +1 617-722-4602
Email: sara.kaufman@ovum.com

Asia-Pacific:
Tanisha Kuckreja
Tel: +61 3 9601 6723
Email: tanisha.kuckreja@ovum.com