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Top Ten Internet Equipment Market Opportunities, Market Forecasts, and Market Strategies, 2003-2008

  • ID: 34163
  • Report
  • April 2003
  • Region: Global
  • 375 pages
  • Wintergreen Research, Inc
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The markets for Internet equipment depend on build-out of converged voice and data networks. High-speed access and security are added to traditional demand for five nines 99.999% of reliability. Data networks have traditionally provided only four nines of reliability. Blade servers change that network constraint, by offering inexpensive, reliable hardware.

The reliable circuit switched telecommunications network is of value. It will not go away. The Internet needs the 5 nines of reliability offered by the telecommunications backbone. Existing equipment and backbones will evolve into the cloud architecture, supporting packet transmission of voice and data.

Worldwide Internet telecommunications equipment markets at $25.2 billion in 2002 are expected to reach $67.9 billion by 2008

IP call control is being implemented by a combination of voice over IP routers, softswitches, and blade servers from the computer industry.These markets account for 26% of Internet equipment markets by 2008. These systems work by having softswitch software provide the call routing functionality that is now provided by a circuit switch. Blade servers at $1,000 per processor provide enormous price performance advantages over existing proprietary voice switch hardware. The blade servers come with a backplane that simplifies wiring and a router in the enclosure.

The following key topics are covered in this report:

- Internet Enhances Productivity,
- Next Generation Networks,
- Internet Equipment Market Forecasts
- Evolution Of Market Needs,
- Market Growth Dynamics,
- Fundamental Requirements For The Internet,
- Selected Leading Vendor Positioning

Following is a list of companies profiled in this report:

- 3Com Corporation
- 3M
- Avici
- Cisco
- Enterasys
- Extreme Networks
- Foundry Networks
- Juniper
- Linksys
- Nortel Networks
- NEC
- Riverstone Networks

This report consists of over 375 pages and includes over 165 tables and figures.
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TABLE OF CONTENTS:

TOP TEN INTERNET EQUIPMENT COMPANIES EXECUTIVE SUMMARY ES-1

Summary Internet Equipment Market Forecasts ES-1

IP Architecture ES-3

Summary Internet Equipment Market Shares ES-5

Routers ES-9

Router Market Shares ES-9

1. TOP TEN INTERNET EQUIPMENT MARKET DESCRIPTION 1-1

1.1 Converged Voice And Data Networks 1-1

1.2 Internet Enhances Productivity 1-1

1.3 Supply Chain Management 1-3

1.4 Next Generation Networks 1-4

1.4.1 Network Edge Shifts 1-4

1.4.2 Integration 1-5

1.5 Network Capacity Issues 1-5

1.6 Network Revenue Issues 1-8

1.6.1 Telephone Numbers For Data 1-8

1.6.2 IP Telephony Vs. Circuit Switching 1-12

1.6.3 Telecommunications Still Drives Revenue 1-13

1.6.4 Pervasive Computing 1-14

1.7 Evolution Of Market Needs 1-14

1.7.1 Internet Network 1-15

1.7.2 Advantages Of Packet/Cell Switching 1-16

1.7.3 Rapid Advances In Optical Networking 1-17

1.7.4 LANs 1-18

1.7.5 WANs 1-19

1.7.6 MANs 1-19

1.8 Fundamental Requirements For The Internet 1-20

1.8.1 High Reliability 1-21

1.8.2 High Performance 1-21

1.8.3 High Performance Under Stressful Conditions 1-22

1.8.4 Scalability 1-22

1.8.5 Interoperability 1-23

1.8.6 Cost Effectiveness 1-23

1.9 Market Driving Forces 1-24

1.10 Market Growth Dynamics 1-28

1.11 Multimedia Markets 1-30

1.11.1 IP Telephony Service Solutions 1-31

1.11.2 Web Services 1-32

1.12 2001 Difficult Year For Telecommunication Vendors 1-33

1.13 Internet Equipment Market Makers 1-36

1.13.1 Demand For Total Solutions 1-40

1.14 Marketing Globally 1-40

1.15 Communications Traffic Profile 1-42

1.15.1 Internet Traffic 1-42

2. TOP TEN INTERNET EQUIPMENT COMPANY MARKET SHARES AND MARKET FORECASTS 2-1

2.1 Switched Network Uses IP Architecture 2-1

2.2 Internet Equipment Market Driving Forces 2-1

2.3 Summary Internet Equipment Market Shares 2-3

2.4 Cisco Systems Dominant Position In The Internet Equipment 2-6

2.4.1 Product Life Cycle 2-7

2.4.2 Sales Cycle 2-7

2.4.3 Competition 2-8

2.5 Selected Leading Vendor Positioning 2-8

2.5.1 Juniper Networks 2-9

2.5.2 Nortel 2-9

2.6 Market Segments 2-10

2.7 Summary Internet Equipment Market Forecasts 2-16

2.8 Routers 2-18

2.8.1 Router Market Shares 2-18

2.8.2 High End Service Provider Router Market Shares 2-21

2.8.3 Mid Range Service Provider Router Market Shares 2-23

2.8.4 High End Enterprise Router Market Shares 2-25

2.8.5 Mid Range Enterprise Router Market Shares 2-27

2.8.6 Low End Enterprise Router Market Shares 2-29

2.8.7 SOHO Router Market Shares 2-31

2.9 Circuit Switch Network Architecture 2-33

2.9.1 Service Provider and Enterprise Router Market Forecasts 2-35

2.9.2 High End, Mid Range, and Low End Router Market Forecasts 2-38

2.9.3 SOHO Router Market Forecasts 2-39

2.9.4 Router Unit Shipments Analysis 2-40

2.10 Data Switches 2-42

2.10.1 Layer 2 and Layer 3 Data Switch Market Shares 2-43

2.10.2 Layer 4-7 Application Switches Market Shares 2-47

2.10.3 10 Gigabit Ethernet Switch Market Shares 2-49

2.10.4 Data Switch Market Forecasts 2-50

2.10.5 Internet Equipment LAN, MAN, And WAN Market Shares 2-57

2.10.6 Softswitch Flexible Architecture 2-60

2.10.7 Network Analysis 2-63

2.11 Communications Market Trends 2-66

2.11.1 Convergence Means That Voice Becomes Data In The Network 2-67

2.12 Cisco Equipment Market Participation 2-69

2.12.1 Cisco Market Analysis, 2001 and First Three Quarters 2002 2-72

2.13 Internet Equipment Markets 2-84

2.13.1 10 GigE Market 2-84

2.13.2 Worldwide High End Router Markets 2-85

2.13.3 Mid-Range Router Markets 2-87

2.13.4 Low End Routers 2-88

2.13.5 SOHO Routers 2-90

2.13.6 Router Market Analysis 2-91

2.13.7 Router Trends 2-92

2.13.8 Small Offices And Telecommuters 2-93

2.13.9 Cisco 800 Series 2-94

2.13.10 Cisco 1600 Router For Small Branch Offices 2-97

2.13.11 Cisco 1700 Series 2-99

2.13.12 Cisco 2500 Series 2-100

2.13.13 Cisco 2600 Series 2-101

2.13.14 Cisco 3600 Series 2-104

2.13.15 Mid Range Router Products 2-106

2.13.16 High End Router Products 2-106

2.13.17 Cisco 7000 Series 2-109

2.13.18 Cisco 10000 Series Internet Ro uter 2-112

2.13.19 Cisco 12000 Series Internet Router 2-113

2.14 Storage Routers 2-114

2.14.1 Independent Storage Function 2-115

2.14.2 Intelligent Storage Networks 2-115

2.14.3 Availability Of Information 2-116

2.14.4 Storage Area Network Definition (SANs ) 2-117

2.14.5 Comprehensive SAN Solutions 2-120

2.14.6 Cisco SN 5420 Storage Router 2-121

3. TOP TEN INTERNET EQUIPMENT PROVIDER PRODUCT DESCRIPTIONS 3-1

3.1 Cisco Product Offerings 3-1

3.1.1 Cisco Routers 3-2

3.1.2 Cisco Cable Systems 3-13

3.1.3 Cisco IOS 3-18

3.1.4 Cisco Automatic Routing Management 3-20

3.1.5 Cisco Switching 3-23

3.1.6 Cisco ATM 3-25

3.1.7 Cisco IP + ATM Switches 3-25

3.1.8 Cisco Access 3-25

3.1.9 Broadband Access 3-27

3.2 Juniper 3-27

3.2.1 Juniper ERX Modules 3-30

3.2.2 Juniper ERX System Modular Carrier-Class Design 3-31

3.2.3 Juniper Channelized E1 and T1 Modules 3-32

3.2.4 Juniper Channelized OC3/STM-1 and OC12/STM-4 Modules 3-34

3.2.5 Juniper Channelized T3 Modules 3-36

3.2.6 Juniper Ethernet Modules 3-37

3.2.7 Juniper HSSI Module 3-39

3.2.8 Juniper OC-3/STM-1 and OC-12/STM-4 ATM Modules 3-40

3.2.9 Juniper Tunnel Service Line Module 3-40

3.2.10 Juniper Unchannelized E3/T3 Modules 3-41

3.2.11 Juniper Service Deployment System 3-41

3.2.12 Juniper ERX and Performance Manager 3-42

3.2.13 Juniper ERX and Fault Manager 3-42

3.2.14 Juniper Networks T -Series Routing 3-43

3.2.15 Juniper Junos Internet Software 3-45

3.2.16 Juniper Internet Optimized Architecture 3-47

3.3 Foundry Networks 3-47

3.3.1 Foundry Networks Comprehensive Line 3-50

3.3.2 FastIron Enterprise Switches 3-51

3.3.3 EdgeIron Layer 2 Switches 3-51

3.3.4 NetIron Metro Routers 3-52

3.3.5 BigIron Layer 3 Backbone Switches 3-53

3.3.6 ServerIron Layer 4-7 Traffic Management Switches 3-55

3.3.7 IronView Network Manager 3-55

3.3.8 Layer Three Switching 3-56

3.4 Extreme Networks 3-56

3.4.1 Extreme Networks Layer 3 Switching Solution 3-59

3.4.2 High-Performance Application And Services Infrastructure 3-61

3.4.3 Extreme Networks Hardware And Software Products 3-61

3.4.4 Extreme Networks BlackDiamond Core Switching Platform 3-65

3.4.5 BlackDiamond 6800 Series 3-68

3.4.6 Extreme Networks Summit Stackable Products 3-69

3.4.7 Extreme Networks Applications Servers 3-70

3.4.8 Extreme Networks Multi-Tenant Market Positioning 3-71

3.4.9 Extreme Networks Alpine 3800 Series 3-72

3.4.10 ExtremeWare Software 3-73

3.5 Avici 3-73

3.5.1 Avici Carrier System Control Software 3-74

3.5.2 Avici Composite Links 3-74

3.5.3 Avici Switch Fabric 3-75

3.5.4 Avici ASIC-based Packet Routing Technology 3-76

3.6 Enterasys 3-77

3.7 Linksys 3-78

3.8 Ericsson 3-80

3.9 Aprisma Software Management Technologies 3-81

4. TOP TEN INTERNET EQUIPMENT STRATEGIC MARKET POSITIONING 4-1

4.1 Strategic Business Tools 4-1

4.2 Cisco Market Strategy 4-2

4.2.1 Cisco End-To-End Networking Solutions 4-4

4.2.2 Optical Networking 4-5

4.2.3 Cisco Routing Strategy 4-5

4.2.4 Cisco Switching Strategy 4-6

4.2.5 Cisco Service Provider Solutions 4-7

4.3 Juniper Networks Market Strategy 4-7

4.3.1 Juniper Service Provider Positioning 4-9

4.3.2 Juniper Networks Customized, Graphical Reporting 4-10

4.3.3 Automated Failover Via Routing Protocols 4-11

4.3.4 Juniper Flexible MPLS Benefits 4-11

4.3.5 Juniper Technology 4-13

4.3.6 Juniper Service Provider Internet Infrastructure 4-14

4.3.7 Juniper Leverages Cu stomer Base 4-14

4.3.8 Juniper Service Levels with IP QoS Strategy 4-16

4.3.9 Carrier-Class Edge Router Positioning 4-16

4.3.10 Juniper IP Multicasting 4-18

4.4 Foundry Networks Strategy 4-19

4.4.1 Foundry Networks Metro Router Capabilities 4-20

4.4.2 Internet Traffic Management Systems 4-21

4.5 Extreme Networks Strategy 4-21

4.5.1 Extreme Networks Marketing Strategy 4-23

4.6 Avici Strategy 4-24

4.6.1 Avici Routing Solution 4-25

4.6.2 Carrier-Class Reliability 4-25

4.6.3 Avici Rapid Response to Network Demands 4-26

4.6.4 Avici Composite Link Technology 4-26

5. INTERNET EQUIPMENT COMPANY PROFILES 5-1

5.1 3Com Corporation 5-1

5.1.1 Business Networks Company 5-2

5.1.2 3Com Revenue 5-4

5.1.3 3Com Sales By Segment: 5-4

5.2 3M 5-5

5.2.1 3M Communications Market 5-6

5.3 Avici 5-8

5.3.1 Avici Customers 5-8

5.3.2 Avici Revenue 5-10

5.3.3 Avici Restructuring Programs 5-13

5.4 Cisco 5-14

5.4.1 Cisco Strategy 5-14

5.4.2 Cisco Systems 5-14

5.4.3 Cisco Net Sales / Revenue 5-15

5.4.4 Stock Repurchase Program Expanded 5-20

5.4.5 Enterprise 5-21

5.4.6 Service Provider 5-22

5.4.7 Commercial 5-23

5.4.8 Cisco Routers 5-26

5.4.9 Cisco Switches 5-26

5.4.10 Cisco Access 5-27

5.4.11 Cisco Service Provider Packet Switching And Routing 5-27

5.4.12 Cisco IOS Software 5-29

5.4.13 Cisco Softswitch 5-29

5.4.14 Cisco Systems / Vida Networks 5-30

5.4.15 Cisco Chinese Market Presence 5-30

5.5 Enterasys 5-31

5.5.1 Enterasys Customers 5-31

5.5.2 Enterasys Networks Restructuring 5-31

5.5.3 Enterasys Networks Philosophy 5-32

5.5.4 Enterasys Networks Multi-layer Switching 5-33

5.5.5 Enterasys Networks High-End Switch Routing 5-33

5.5.6 Enterasys Networks Intrusion Detection Systems 5-33

5.5.7 Enterasys Technology 5-33

5.5.8 Enterasys Networks Revenue 5-34

5.5.9 Cabletron Systems 2001 Revenue 5-34

5.5.10 Enterasys Customers 5-36

5.5.11 Enterasys Revenue Recognition Practices 5-36

5.6 Extreme Networks 5-37

5.6.1 Ethernet Everywhere Initiative 5-37

5.6.2 Extreme Networks Revenue 5-39

5.6.3 Extreme Networks Revenue 5-41

5.7 Foundry Networks 5-41

5.7.1 Foundry Networks Revenue 5-42

5.7.2 Foundry Products 5-44

5.7.3 Foundry Networks Customers 5-45

5.8 Juniper 5-45

5.8.1 Juniper Customers 5-46

5.8.2 Juniper Acquisition of Unisphere Networks 5-47

5.8.3 Juniper Networks Revenue 5-48

5.8.4 Juniper Networks Revenue 5-48

5.9 Linksys 5-50

5.9.1 Linksys Broadband and Wireless Networking 5-51

5.10 Nortel Networks 5-53

5.10.1 Strategies 5-53

5.10.2 Lines Of Business 5-54

5.10.3 Nortel Enterprise Solutions 5-54

5.10.4 Nortel Networks Realignment Plan 5-55

5.10.5 Nortel Reorganization 5-56

5.10.6 Nortel Networks Optical Networks 5-56

5.10.7 Nortel Networks Customers 5-57

5.10.8 Nortel Networks Open Optical Dense-Wavelength Division Multiplexing (DWDM) System 5-60

5.10.9 IP-Ready Open Optical Interfaces 5-60

5.10.10 Nortel Networks Optical Packet Network Solution 5-62

5.10.11 IP Data Services 5-63

5.10.12 Sonet/SDH 5-64

5.10.13 Optical IP Network Backbones 5-64

5.10.14 Acquisitions 5-65

5.10.15 Focus On Solutions 5-65

5.10.16 Nortel Revenues 5-66

5.10.17 Nortel Networks Second Quarter of 2002 Revenue 5-67

5.10.18 Nortel Networks Third Quarter 2002 5-69

5.10.19 Motorola / Nortel In Wireless Merger Talks 5-69

5.10.20 Nortel Networks / Sprint 5-71

5.10.21 Nortel Networks / Cingular 5-71

5.11 NEC 5-72

5.11.1 NEC Handsets 5-73

5.11.2 NEC Handset Customers 5-74

5.11.3 NEC Third Quarter Revenue Of The Fiscal Year Ending March 31, 2002 5-74

5.11.4 NEC Networks 5-75

5.11.5 NEC Solutions (America) 5-82

5.12 Riverstone Networks 5-83

5.12.1 Riverstone Networks Second Quarter Restructured Operations 5-83
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