Corporate IT departments are benefiting from increased competition in the enterprise router market with market falling by 2% in value last year while overall shipments rose 4%.
The disparity between value and volumes illustrates the increasingly competitive enterprise router market, as the likes of Cisco and Juniper battle it out on price and functionality and have to look over their shoulder at increasingly important players such as China’s Huawei.
Research from Infonetics Research shows the value of the enterprise router market in 2004 was £1.88bn. Infonetics expects total revenue to be stagnant this year and then move up to £1.94bn next year. Even by 2008, said Infonetics, sales will only reach £2bn.
All major router suppliers are building extra security features into their products, and market leader Cisco has spent heavily promoting its "self-defending network" solutions.
Infonetics said it expects such solutions to represent 29% of the market by 2008 and eventually to be included by default, with the ultimate disappearance of the standard enterprise router.