Cloud Services Will Impact Enterprise Router Market In Near Future
According to Infonetics Research, the worldwide enterprise router market totaled $3.5 billion in 2012, down 3 percent from 2011. On the flip side, unit shipments for enterprise routers grew 5 percent last year, but they mostly were at the low end of the pricing scale. “Buyers are resorting to low-end routers at their branches rather than the more typical branch and mid-range routers, which resulted in a revenue decline for 2012,” notes Matthias Machowinski, directing analyst/Enterprise Networks and Video. “However, with the rise in cloud-services adoption, we don’t think buyers are on a sustainable path with low-end routers, and we expect them to shift their spending back to branch and mid-range routers. Coupled with general economic growth, this should drive renewed revenue growth in 2013.” And there’s even better news: Infonetics forecasts the global enterprise router market will reach $5 billion by 2017.
TIA Report Says Mobile Data Now Trumps Voice
The 2013 ICT Market Review & Forecast (MR&F), just released by the Telecommunications Industry Association (TIA), notes that, for the first time, U.S. wireless data spending topped wireless voice spending, and U.S. wireless penetration surpassed 100 percent of the adult population. Comments TIA President Grant Seiffert, “In the years ahead, wireless infrastructure investments will continue surging in order to meet the heavy demand for mobile data. At the same time, specialized services will put even more steam into the ICT market.” The report predicts that, in 2014, overall telecom spending growth will increase faster in the United States than it will internationally, driven by spiking demand for specialized services like cloud computing, M2M and cybersecurity.

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