Ethernet Switching Market Grows to $6B in 2Q16

According to multiple reports, Cisco still dominates despite its troubles.

By Sean Michael Kerner | Posted Sep 2, 2016
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2016 is turning out to be another year of growth for the Ethernet switch market, according to a pair of recently released analyst reports.

Dell'Oro Group's Ethernet Switch - Layer 2+3 Quarterly report for the second quarter of 2016 pegs revenue for the quarter at $6 billion, for a 6 percent year-over-year gain.

"2Q16 was a strong quarter for almost all vendors and segments within the Ethernet Switch market," Alan Weckel, vice president at Dell’Oro Group, said in a statement.

A key driver of growth in the quarter is buyers in China as well as the Cloud, which is helping to move the market forward.

Synergy research recently released its combined router and switch market report for the second quarter. According to Synergy Research, the combined market generated $10 billion in second-quarter revenue, with 60 percent (or $6 billion) attributable to switching.

Both Synergy Research and Dell'Oro identify Cisco as the dominant player in the space. According to Dell'Oro, Cisco represented 55 percent of second-quarter switch revenues. Hewlett Packard Enterprise (HPE) came in second at 9 percent, and Huawei was third at 7 percent.

"The big picture is that total switching and router revenues are remaining relatively stable at some $10 billion per quarter and Cisco continues to control well over half of the market,” Jeremy Duke, Synergy Research Group’s founder, said in a statement. "Some view SDN and NFV as existential threats to Cisco’s core business but there are few signs that this is impacting its competitive market position."

Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist

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