As the overall router market is getting back on its feet, market leader Cisco saw its main competitor Juniper Networks closing in.
Routers sales in the second quarter of this year increased by eight per cent to $2.5bn, reported the Dell'Oro Group. According to the analyst firm this was the highest quarterly growth since 2000.
The router market had been flat since the dotcom bubble burst. Especially as enterprises stopped buying routing equipment.
"This is a turnaround in terms of the upgrade cycle for enterprises," Shin Umeda, principal analyst of router research with Dell'Oro Group told vnunet.com.
Cisco still dominates the market with a commanding 78 per cent market share. But Juniper Networks is closing in, growing its share from 13 to 16 per cent year on year.
"Juniper has been chipping away at Cisco's dominance," said Umeda. "At the high end of the market Juniper is doing very well."
Juniper primarily sells so-called core routing systems, routers costing upwards from half a million dollars that are used by telecommunications providers and large enterprises. This segment of the market has been the sweet spot for the past two years as a result of the rise in broadband internet connections.
Umeda predicted that the bulk of the investment in that area has yet to come, as providers are only just beginning to roll out bandwidth-consuming applications such as internet television.
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