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Computer Networking Equipment ManufacturingProduct Type: Market Research ReportPublished by: First Research, Inc. Published: April 2008 Product Code: R3470-1276 Description The computer networking equipment industry includes about 1,000 companies with combined annual revenue of $60 billion. Major US companies include Cisco Systems, Juniper Networks, Extreme Networks, and Foundry Networks. Large foreign competitors in the US market include Nortel, Fujitsu, NEC, Alcatel-Lucent, and Siemens. The industry is concentrated: the 10 largest companies hold 50 percent of the market. COMPETITIVE LANDSCAPE Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The industry is capital-intensive: average annual revenue per employee is about $500,000. The US telecommunication industry is in transition: the current telephone backbone network is being converted from circuit-switched to multimedia networks combining voice, data, and video over high-speed links. This transition will require replacing a substantial portion of equipment, presenting an opportunity for all equipment vendors. PRODUCTS, OPERATIONS & TECHNOLOGY Major products of networking equipment manufacturers are switches, routers, and network control equipment interconnected using fiber optic and high-speed wiring. Major services of equipment suppliers include system and network design, software development, installation, monitoring, and maintenance. Other hardware and software products include intrusion prevention devices, remote termination equipment, firewalls, and network ... Table of Contents
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