An Analysis on China’s Switch Market in 2008 Q1 by CCID Consulting Communications Industry Research Center
BEIJING, June 6 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released an article on China’s switches market in 2008Q1.
China’s switch market keeps increasing due to the rapid growth of broadband subscribers and development of comprehensive broadband business in China. CCID Consulting statistics show that sales revenue of switches reaches 2.18 billion Yuan, up by 5.11% in 2008 Q1.
The mainstream brands in China’s high-end switches are Cisco, H3C, and Huawei in 2008 Q1. Cisco releases Nexus 7000 series switches, a novel switch specified for data centers in 2008 Q1. Nexus 7000 switching equipments is based on ‘Trusted Security’ architecture, integrating Ethernet, IP, and storage into a unified network fabric. Using Linux based operation system developed by Cisco, Nexus 7000 becomes a main popularizing product in the high-end market. The sales status of H3C’s S7500E series high-end multi-business routing switches, released in second half year of 2007, keeps stable in 2008 Q1 as well. Integrating businesses including wireless, MPLS, IPv6, security, PON, portal authentication, and VLAN mapping together, S7500E can satisfy demands of most industries such as government, electric power, education, finance, manufacturer, and operators in network construction to support multiple businesses. Generally speaking, high-end switch market is monopolized by few companies, and the competition is getting more intensive.
In middle and low-end switch market, network equipment manufacturers including Cisco, Huawei, H3C, Nortel, ZTE, BDCom, Fiberhome Network, Maipu, Ruijie, and Harbour Networks, form the main body of market competition. Juniper, a famous router manufacturer, released EX4200 in 2008 Q1, which marked its entrance to the switch market. EX4200 is close to aggregation layer products of Cisco, facing middle and low-end switch market. Juniper’s entering will result in market shuffling, basing on its powerful brand influence and sales channel.
Figure 1: Scale and Growth Rate of Switch Market in 2008 Q1
http://www.ccidconsulting.com/upload/13207.jpg
Data Source: CCID Consulting, April, 2008
Increasing application in government and finance industry is the main driving force in the switch market growth. Operators need more switches as well due to 3G mobile network construction and the business development of VoIP and mobile Internet.
Benefiting from government projects such as ‘Digital City’ and ‘3111 Project of Police Ministry’, informatization projects keep advancing and network-based e-government application keeps extending, which drives the fast growth of switch market in government.
Finance industry is one of the earliest industries to launch information construction. The informatization level of finance industry, especially banking industry and securities & funds industry, is superior to other industries. Securities industry enters a second climax of information construction in 2007 due to the explosion of China’s financial market. In 2008 Q1, demands from finance industry keep increasing quickly, which is the main driving force of the switch market development.
Besides, the launch of 3G commercial experimental network construction and new businesses such as VoIP and IPTV stimulates building and upgrading of next generation IP bearer network and carrier-grade Ethernet, which drives the increasing demands on switches.
CCID Consulting believes that China’s switch market will develop smoothly in 2008 Q2. Competition among manufacturers will focus on R&D of new products.
Virtual technologies to be introduced to switches
Virtual technologies are effective solutions to protect existed investment on network equipments, by which users can upgrade to the latest network with lowest cost and avoid management problems brought by network dilation through stacking mode.
Secondly, 100,000M Ethernet switches will be the main popularized products in high-end switch market.
10000M Ethernet switches have been the mainstream products at present, deployed from core network to access network. The main application areas of high-end Ethernet switches are education, telecommunication, data center, and network storage, Internet applications like IPTV, and carrier-grade Ethernet construction drives the development of Ethernet switches towards higher speed.
Finally, smart switches spread from core network to access network
Application is the kernel of Ethernet switching technologies. Diversified applications will set higher requirements to the intelligence of switching products. Old networks are connection oriented, where smart products are used in core network mainly, while simple switches are used in access network. Getting along with technology development, network scale is getting larger, and applications are getting more complicated, which make intelligence spread to access network. A core-edge distributed intelligent switching architecture is formed, which is the development trend of future switch products.
About CCID Consulting
CCID Consulting Co., Ltd (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliate to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.
Based on the major competitiveness of the powerful the industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management. Her customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits herself to become the No.1 advisor for enterprise management, the No.1 consultancy for government decision and the No.1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
