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Rap Sheet

Author:

LongTerm CapGains

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Date:

08/26/15 at 9:15 AM CDT

 

 

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ALU gaining market share in the Core Router Segment

New Core Router Sales Push Market Towards All-Time High in 2Q15, According to Dell'Oro Group 5:00 AM ET 8/25/15 | PR Newswire

In a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, the worldwide Router market approached all-time high levels during 2Q15 with most of the growth coming from the ultra-high end Core Router segment. Several vendors recognized sales from new core router products, after several quarters of customer evaluation and testing.

 

"Impressive double-digit year-over-year growth in the core this quarter was largely driven by the adoption of vendors' new core routing platforms. These new, higher-capacity platforms are necessary for Service Providers who want to more efficiently deploy 100 GE connections--shipments of 100 GE ports grew over 150 percent year-over-year," said Alam Tamboli, Senior Analyst at Dell'Oro Group. "We expect the strong growth to continue through 2015 and into 2016 as demand for 100 GE follows or exceeds a similar robust growth pattern that 10 GE did almost a decade ago," Tamboli continued.

Of notable mention was share gain from Alcatel-Lucent with its new core router product 7950 XRS. We attribute Alcatel-Lucent's strength to the popularity of its 100 GE solution. Sales in China were also strong on a year-over-year basis, and Service Providers in China have favored Huawei's followed by ZTE's solution over U.S.-based competitors Cisco and Juniper. Although competitor Alcatel-Lucent still has some favor in China's core router market, we believe Huawei holds the dominant position in the overwhelming majority of new deployments within the country.

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