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Ethernet switch market stays weak in Q2 '03: Gartner

Posted: 19 Aug 2003 ?? ?Print Version ?Bookmark and Share

Keywords:gartner? ethernet? switch port? cisco?

According to Gartner Inc., worldwide Ethernet switch port shipments totaled 37.4 million units in Q2 of 2003, a 2.6 percent decline from Q2 of 2002. Further, worldwide Ethernet switch vendor revenue has reportedly declined by 15 percent from a year ago, to $2.3 billion.

"Despite new features such as enhanced security and Power over Ethernet, vendors that play in the enterprise market are facing challenges in selling upgrades to their installed bases," said Rachna Ahlawat, principal analyst for Gartner's Enterprise Networking and Communications Worldwide group. "The lack of adoption of Gigabit Ethernet to the desktop, despite significant price reductions, indicates that increased speed will not lead the market out of its doldrums in 2004."

Gartner says that Cisco Systems continued to dominate the market in Q2 of 2003, claiming 70.6 percent of worldwide Ethernet switching revenue and 37.7 percent of port shipments. Hewlett-Packard, on the other hand, was the only top-tier vendor to post positive growth in both revenue and port shipments.

"The second quarter results make a second half upturn less likely, and Ethernet switching vendors should carefully plan out their activities for the second half of 2003," Ahlawat said. "Vendors must also prepare themselves to respond to possible rapid changes in demand and strengthen their position in some of the verticals, such as education, government, and healthcare, where the demand for networking equipment has increased."

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