Demand for Global Communications Drives High-end Enterprise Router Markets

Mumbai, Maharashtra, India, Thursday, March 16, 2006 -- (Business Wire India)

Various multimedia, including VoIP, videoconferencing, instant messaging and streaming video, are required to communicate and transfer information between offices. These new technologies require massive investment in new networking equipment, and the high-end router will be key to managing the entire communications process.

Frost & Sullivan IP Communications Group finds that World Enterprise Router Markets earned revenues of $7.3 billion in 2005 and estimates this to reach $12.2 billion in 2012.

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“The high-end router market is driven by the demand for global communications,” notes Frost & Sullivan Strategic Analyst Shirley Hunt. “Large corporations require high-performance equipment that can handle the wide variety of networking protocols and technologies that are used in the enterprise global network.”

However, the massive install base of legacy equipment, combined with restricted corporate budgets, will pose a daunting challenge for IT departments to upgrade to the newest technologies. In addition, corporate purchasing policies restrict the ability to change vendors or add new products, due to the certification testing requirements.

“Enterprise IT managers must upgrade the network in stages, which minimizes the business disruption,” explains Hunt. “Security and interoperability testing must happen before the upgrade takes place in order to maintain a smooth transition to the new technologies. This challenge slows the penetration of new high-performance routers into existing enterprise networks.”

Router vendors can help enterprise managers by making the upgrade process as simple and least disruptive as possible. By doing extensive interoperability testing and maintaining support for legacy products, vendors can increase the speed of the upgrade process, which should improve the sales of their new router products.

Global corporations must upgrade their communications infrastructure in order to more efficiently take advantage of opportunities around the world. Most of these companies have legacy routers that must be upgraded to process multimedia traffic, and router vendors must help their customers by simplifying the installation and management programs, which will speed up the upgrade process.

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