Cisco's Dominance Of The Router Market Continues - InformationWeek

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Cisco's Dominance Of The Router Market Continues

Cisco Systems remains king of the router market. Revenue andmarket-share statistics on the enterprise router industryissued yesterday by Dataquest indicate that Cisco tightenedits grasp on the business internetworking market over thelast year. Cisco took in 76.5% of the $1.82 billion inworldwide revenues generated by sales of enterprise routersin the first quarter of this year, according to Dataquestestimates. By comparison, in the same quarter last year,Cisco garnered 69% of the $1.32 billion in router revenues.

Cisco's closest competitor is Nortel Networks, which lastyear acquired Cisco nemesis Bay Networks Inc. Nortelcontrols 7.6% of the market, down from 8.3% last spring.3Com has 3.1% of market share, up from 2.9% last year.

But first appearances can be deceiving. Though Nortel and3Com certainly remain minority players in the LAN routermarket, both companies have enjoyed double-digit revenuegrowth in this area. The $138.8 million that Nortel gainedin the first quarter of 1999 is up 26.4% from the sameperiod last year, while 3Com's $55.7 million in first-quarter router revenue represents a 45% jump over last year.

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