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Backbone Routers Grow At A Healthy Pace: Report

Sales of high-end Internet backbone routers grew at a healthy pace in the first quarter of this year, according to a new report just released by the Dell'Oro Group.

A steady growth trend that began in 2003 has continued with revenues from backbone router sales reaching $420 million last quarter, representing a quarterly growth rate of 9%. Cisco Systems remains the market leader, with Juniper Networks in second place and Avici in third.

Given that first quarter sales are normally tepid, Dell'Oro's principal analyst for routers research Shin Umeda, noted that the early-year growth was particularly strong. "Even though the first quarter of the year is seasonally weak, high-end router demand was exceptional," he said in a statement. "Internet and telecommunications service providers around the world are investing heavily in their backbone networks to keep up with the onslaught of network traffic coming from broadband users."