Worldwide L2-L3 Ethernet switch revenue totaled $3.3 bln in Q1 2005, down 7% from Q4 2004, and ports decreased 7% to 57 mln, according to Infonetics Research. Growth will pick up over the next four quarters, with ports increasing 14% and revenue 8% by Q1 2006. Worldwide revenue is expected to reach $15.9 bln by 2008.
Worldwide L4-L7 switch/load balancer shipments are up 10% to 11,000 between Q4 2004 and Q1 2005, and revenue is up 5% to $175 mln, driven by sales of chassis-based devices. While quarterly growth is expected to slow and remain flat through 1Q06 in the overall L4-L7 product market, as there are no compelling applications driving significant increases right now, SSL-enabled devices will continue to sell well.
Cisco maintains its lead in the L2-3 Ethernet switch market, with about two-thirds of worldwide revenue share and close to a third of worldwide port market share; Cisco also leads the L4-L7 switch/load balancer market in worldwide port and revenue share. ProCurve (HP) remains in second place for L2-3 Ethernet switch market revenue market share, and is sixth for port share. F5 is now solidly in second place in the overall L4-L7 switch/load balancer market, passing Nortel in Q4 2004, with over a quarter of worldwide revenue share, and maintains its strong lead in the L4-L7 switch/load balancer with SSL market, with the main competition coming from Cisco and Nortel. Foundry had a positive quarter in the L4-L7 switch/load balancer market, significantly increasing unit and revenue share. Fixed switches represent 48% of total L2-L3 switch revenue (up from Q4 2004) and chassis switches represent 52%; this has changed from 40% fixed configuration and 60% chassis switch revenue in 2003.