The worldwide market for LAN switches declined 2 percent in the second quarter of 2004, but is up 23 percent year-over-year. The slight decline in 2Q04 follows 13 percent growth in the first quarter of 2004. According to IDC's Worldwide LAN Switch QView, port shipments fell 1 percent sequentially, but rose 34 percent over 2Q03. Cisco remains the market leader by a long margin. HP is in second place, with Nortel, 3Com, Extreme and Foundry following at a close distance.

What is in effect the "battle for second place" is proving to be long and drawn out. Over the past two years, no one vendor has been able to rise above the fray and maintain a second place spot in the market with over 6 percent share. HP and 3Com have come closest, with Nortel at their heels. Extreme and Foundry are tantalizingly close to each obtaining 3 percent market share, but this landmark continues to defy them. With the market mature, vendors are diving deeper into particular markets and segments, be they technical, such as security; vertical, such as government or financial services; or demographic, like small-medium business.

"Despite the dip this quarter, we believe that 2004 will be a growth year for LAN switching, currently forecasted around 3 percent. Gigabit is certainly one of the main drivers, having already surpassed fast ethernet in revenue terms in 1Q04. We expect this trend to continue as gigabit to the desktop and in datacenters becomes more prevalent," said Max Flisi, research analyst in IDC's Enterprise Networks program. "Meanwhile, prices are gradually coming down. In light of that, we see 10gigabit ethernet ports, which are commonly used to aggregate gigabit connections, also increasing at an elegant pace."

QView highlights include:

  • 3Com, Enterasys, and Extreme each inched up by 0.2 percentage points in market share of end-user revenue. All others were either flat or slightly down. Extreme edged out Foundry this quarter to take the number 5 position in the overall market.
  • Gigabit ethernet saw sequential port shipment increases over last quarter. Fast ethernet shipments declined.
  • Foundry and Extreme are shipping fixed 10gigabit ethernet ports. The 10gig market grew 24% sequentially in both revenue and port shipment terms.
  • From a geographic standpoint, Asia Pacific proved to be a strong region for 2Q04.

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access