The networking equipment market, last year, started with a bang and ended the
year with hands in prayers. It has been a dismal year in which router, the
fastest growing market segment, showed only a growth of 86 percent. Segments
like leased line modems and RAS which had fanciful flights in terms of growth
was brought back to Earth. RAS showed only a 21 percent growth, while leased
line modems did equally worse at 22 percent growth.
The trends clearly show a slackening carrier market while large enterprises
took to wide area networks. While ISPs faltered, banks rose to the ocassion
executing LANs and WANs to connect their branches and be more efficient.
If one keeps a track on the growth of LAN equipments down the years, it
clearly emerges that LANs are fast moving to a switched architecture rather than
a shared one. Prices of basic products have also severely dropped, hence
affecting the toplines and bottomlines of the NIC and hub segments.
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