Dell'Oro Group Releases 1Q99 Report; Shared Hub and LAN Switch Market Grew 3% in 1Q99; Layer 2 Fast Ethernet Switches and Gigabit Ethernet Switches Drive Growth

Business Wire, May 26, 1999

PORTOLA VALLEY, Calif.--(BUSINESS WIRE)--May 26, 1999--

Total sales of Shared Hubs and LAN Switches grew 3% ($53 million), to $2.8 billion in 1Q99, according to the Dell'Oro Group's 1Q99 report, published last week. Port shipments grew 4% (1.5 million ports), to 32.7 million. This growth came from Layer 2 Fast Ethernet Switches which grew by $190 million (16%), and Gigabit Ethernet Switches which grew by $60 million (48%), during the quarter.

Cisco Systems showed robust growth in Layer 2 100 Mbps Switching (both fixed and modular) as well as Gigabit Ethernet Switching. Cabletron showed strong port growth in the Layer 3 Ethernet Switch market, growing to become the market leader with 143 thousand ports shipped. -0-

              Market Leaders - Shared Hubs & LAN Switches

                                                 Quarterly
Total Market                           1Q99        Growth
------------                         --------    ---------
MFG Revenue ($M)                     $2,782.5        2.6%

Vendor                                 Rank        Growth
------                                 ----        ------
Cisco                                    1          10.6%
3Com                                     2         - 7.5%
Nortel Networks                          3           7.0%
Cabletron                                4           9.3%
FORE Systems                             5           3.2%
Xylan (Alcatel)                          6         - 9.9%
Lucent                                   7          20.3%
Allied Telesyn                           8          15.2%
Hewlett Packard                          9          12.2%
IBM                                     10        - 40.6%

The Dell'Oro Group's Shared Hub and LAN Switch report provides in-depth data and analysis of the Shared Hub and LAN Switch markets. The report contains hundreds of tables of data on the performance of nearly 25 manufacturers.

The Dell'Oro Group is a research and consulting firm specializing in business planning and strategic competitive analysis in the networking industry.