Demand for 3rd Generation IP/MPLS Routers Continues to Drive Router Sales

Market Wire, May, 2008

(SRG) announces the release of their Q1 2008 Enterprise and Service Provider Router/Switch Market Share report. Q1 2008 worldwide market router sales grew to $3.4 billion, representing a 23 percent year over year increase.

The growth in router equipment revenue continues to be driven by Service Provider's migrating their networks to next-generation networks based on an IP, MPLS and Ethernet data services layer. The aggressive growth in router sales supporting IPTV equipment deployments remains strong, especially at the Edge of Service Provider Networks. Such investments are increasing the velocity of Carrier Ethernet deployments.

"IPTV has placed a focus on intelligence and service delivery at the Edge of the network," says Ray Mota, Ph.D., Chief Research Officer at Synergy Research Group, "Lower costs associated with Carrier Ethernet continue to drive carriers' decisions to deliver IPTV using Carrier Ethernet at the Edge of their next-generation network."

From a market share perspective, Cisco captured 65 percent of the total Q1 2008 Enterprise and Service Provider Router/Switch Market, followed by Juniper with 16 percent, and Alcatel-Lucent with 8 percent. Notable fast growers also included Extreme, Force10, and Foundry.

About Synergy Research Group

Synergy Research Group ( www.srgresearch.com ) is a market research leader providing quarterly market share, analysis, and forecasting services to the Telecom, Mobile and Networking Industries.

Media Contact: Heather Gallo Business Development Manager Synergy Research Group 1 775-852-3330 ex 101 Email Contact