The acquisition of 3Com had propelled HP into the number two spot in the Ethernet switch market, according to market research firm In-Stat. In addition, the market is constricting so a handful of vendors account for virtually all of the revenue.
The acquisition of 3Com had propelled HP into the number two spot in the Ethernet switch market, according to market research firm In-Stat. In addition, the market is constricting so a handful of vendors account for virtually all of the revenue.HP, which now has 20% market share, usurped D-Link's spot in the second quarter of 2010. The top four vendors (Cisco, HP, D-Link and Netgear) accounted for virtual all of the market's shipments. Their lofty positions underscore the consolidation that has been taking place in the networking sector. Recently, vendors have been trying to increase their size via acquisitions in order to compete in a market showing signs of maturity and consolidation.
Those signs were evident in the second quarter: port shipments grew 3.3% but revenue dipped by 2.0%. Only one market segment fixed 10G bps Ethernet had positive growth: shipments were up 21.1% and revenue increased 6.6%. Another plus was Power over Ethernet features are becoming more common: they are available on 18.3% of all port shipments.
The network market has been undergoing a dramatic restructuring in the last few years. With consolidation taking shape, small and medium businesses are concerned about thelr suppliers' long term viability. When making their next major purchase or upgrade, these companies would like to be sure that they are teaming with a vendor that will still be selling Ethernet gear in a few years.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
What The Business Really Thinks Of IT: 3 Hard TruthsThey say perception is reality. If so, many in-house IT departments have reason to worry. InformationWeek's IT Perception Survey seeks to quantify how IT thinks it's doing versus how the business views IT's performance in delivering services - and, more important, powering innovation. The news isn't great.