Cisco Maintains Router Lead on Juniper

The sales of big routers are going gangbusters.
Author:
Publish date:

Cisco (CSCO) - Get Report is keeping its edge in the surging core router market.

With phone companies splurging on Internet capacity expansion, sales of big routers, the gear used at central junction points to direct data traffic, are up 15% in the second quarter over first-quarter levels.

And for the second quarter in a row, Cisco's new big routers have helped the networking giant maintain its market-share lead over rival

Juniper

(JNPR) - Get Report

. In the second quarter, Cisco had 55.7% of the large router market compared with 35.9% held by Juniper, according to a report from Dell'Oro Group.

Both companies lost a couple percentage points of business to

Alcatel

(ALA)

, which captured 4.9% of the market last quarter.

Overall, core router revenue jumped to $484.2 million in the second quarter, up from $419.9 million in the prior period. Sales in the second quarter nearly doubled the $259.9 sales mark in the year-ago quarter.

After chipping away at Cisco's dominance of the big router market for several years, Juniper hit a market-share high of 39% at the end of the year. Since then, with the Cisco introduction of its 12000 and CRS-1 series of routers, Juniper has seen its slice of the pie shrink each quarter.

Shares of Juniper fell a dime to $23.38, while Cisco also fell 10 cents to $17.74 in midafternoon trading Thursday.