Ethernet Switch Market: Cisco Declines, Arista Gains

IDC first-quarter report shows competitors making headway in Cisco-dominated market.

3 Min Read
Network Computing logo

Cisco lost some of its massive share of the Ethernet switch market in the first quarter while its archrival Arista Networks gained ground, according to market-research firm IDC.

Cisco finished the quarter with a year-over-year revenue decline of 3.5% and its market share dropped to 55.1%, down from 59% in the first quarter of 2016, IDC said in a recent report. In the 10 Gigabit Ethernet segment of the market, Cisco's share dipped to 52.4%, down from 53% in the previous quarter.

Cisco's combined service provider and enterprise router revenue declined 13.3% and its market share was 43.9%, down from 48.8% in the first quarter of 2016.

Meanwhile, Arista Networks – with which Cisco has been embroiled in a long-running legal battle over intellectual property -- saw its switching revenue rise 37.1% year over year and its market share increase to 5.1%, up from 3.9% in the same quarter a year ago. IDC said Arista's market share in the 100 GbE market segment is 27.8%.

Another competitor, Juniper Networks, also gained ground in the Ethernet switch market, seeing its revenue jump 39.2% year over year, according to IDC. Its first quarter market share was 4.3%, up from 3.2% in the first quarter of 2016. Juniper's share of the service provider and enterprise router market increased to 15.6% compared to 14.5% the same quarter last year. 

IDC said Huawei continued to see healthy growth in both the Ethernet switch and router markets on an annualized basis, with switch revenue growing 69.8% year over year in the first quarter. The vendor's share of the Ethernet switch market was 6.3%, up from 3.9% in the first quarter of 2016. Huawei's enterprise and service provider router revenue increased 17% during that time, and its market share grew a bit to 17%, up from 16.3%.

Hewlett Packard Enterprise saw its switch revenue grow 0.8% sequentially in the first quarter and its market share increase to 6%, up from 5% in the fourth quarter of last year, according to IDC. Below is IDC's interactive chart of the Ethernet switch market.




First-quarter revenue for the worldwide Ethernet switch market was $5.66 billion, up 3.3% year over year. However, the global enterprise and service provider router market posted revenue of $4.35 billion in the first quarter, down 3.7% from the first quarter of 2016.

"This will be a market to watch closely over the coming quarters as software-defined architectures start to take hold across the WAN, with the potential for SD-WAN to disrupt traditional routing architectures and WAN transport services, especially at the network edge," IDC said.

Cisco and Arista have been locked in a legal battle since Cisco sued Arista in December 2014, claiming it stole intellectual property and copied CLI commands. In recent weeks, Arista claimed a couple victories in the case when the US Patent Trial and Appeal Board invalidated two patents the International Trade Commission had found Arista to infringe.











About the Author(s)

Stay informed! Sign up to get expert advice and insight delivered direct to your inbox

You May Also Like

More Insights