Dell'Oro Group Report Shows Cisco and Juniper Are Gaining Momentum in the Growing WAN Router Market; Routers Optimized for the Internet Will Become Increasingly Pervasive

Business Wire, Feb 3, 2000

Business Editors/High-Tech Writers

PORTOLA VALLEY, Calif.--(BUSINESS WIRE)--Feb. 3, 2000

As service providers shift their Wide Area Network (WAN) infrastructure from a centralized architecture to a decentralized mesh-like architecture, the points of interconnection will require more intelligence.

Due to this evolution, Dell'Oro Group projects that routers optimized for the Internet will become increasingly pervasive. This point is not lost on Cisco and Juniper who continue to gain momentum in the emerging WAN Router market with the Cisco GSR 12000 and the Juniper M40.

&uot;Unlike other nascent markets where startups emerge in droves, this market has a limited number of suppliers. Developing the intelligence to support the Internet is tremendously difficult, and those few that can achieve this will be greatly rewarded,&uot; said Tam Dell'Oro, Founder of Dell'Oro Group.

The WAN Router market continued to make significant gains in 3Q99, growing 47% ($199 M) according to a Dell'Oro Group report. Cisco and Juniper continue to hold the bulk of the market share with 78% and 15%, respectively.

                            Market Leaders
                              WAN Routers

                                          Quarterly
Total Market                      3Q99       Growth
------------                      ----     --------
MFG Revenue ($M)                  $199          47%

Vendor                            Rank       Growth
------                            ----       ------
Cisco                                1          47%
Juniper                              2          68%
Lucent                               3         -53%
Nortel                               4           0%
Ericsson                             5          50%

Dell'Oro Group's WAN Report tracks Multiservice WAN Switch -- Core &Edge, WAN Routers, DWDM, and SONET. The report reflects worldwide data on revenue, unit/port shipments, and pricing on a vendor-by-vendor basis.

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