CATEGORY

Enterprise Routers and Switches

A router is a physical device that is used to connect multiple networks (at the enterprise premises) i.e. it act as a dispatcher selecting best route for the information transmission Switches focuses on channeling incoming information or data from multiple inputs to specific output ports.

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Enterprise Routers and Switches Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Enterprise Routers and Switches category is 10.60%

Payment Terms

(in days)

The industry average payment terms in Enterprise Routers and Switches category for the current quarter is 127.5 days

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Category Strategy and Flexibility

Engagement Model

Supply Assurance

Sourcing Process

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Pricing Model

Contract Length

SLAs/KPIs

Lead Time

Supplier Diversity

Targeted Savings

Risk Mitigation

Financial Risk

Sanctions

AMEs

Geopolitical Risk

Cost Optimization

Price per Unit Competitiveness

Specification Leanness

Minimum Order Quality

Payment Terms

Inventory Control

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    Enterprise Routers and Switches Suppliers


    1,706
    Total Suppliers
    112
    Diverse Suppliers
    58
    Normalized Supplier Rating
    Enterprise Routers and Switches Supplier

    Find the right-fit enterprise routers and switches supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    Lenovo
    Location
    Jackson, Mississipi
    Duns number
    3862211

    D&B SER Rating

    dnb logo

    Up to 3 months

    1 9
    6
    Low Risk High Risk

    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    44

    100
    Limited (1)
    ESG Perfomance (/100)
    Environment
    52
    Social
    40
    Governance
    43
    6 Domains Performance (/100)
    Business behaviour
    43
    Human rights
    53
    Community Environment
    38
    Corporate governance
    43
    Human resources
    31
    Security Scorecard
    85

    Threat indicators
    B
    86
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    B
    82
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    B
    80
    Application Security
    Detecting common website application vulnerbilities
    C
    77
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    B
    88
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    98
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    lenovo.com
    Industry average
    Adverse Media Appearances
    Environmental Issues
    0
    Workforce Health Safety Issues
    0
    Product Service Issues
    18
    Human Rights Issues
    4
    Production Supply Chain Issues
    7
    Environmental Non Compliance Flags
    25
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    9
    Fraud Issues
    1
    Labor Health Safety Flags
    6
    Regulatory Issues
    8
    Workforce Disputes
    1
    Sanctions
    0
    esg energy transition
    54
    Discrimination Workforce Rights Issues
    1
    esg controversies critical severity
    No

    Enterprise Routers and Switches market report transcript


    Enterprise Routers and Switches Market Analysis and Global Outlook

    • The recent outbreak of COVID-19 around the world has hit the categories of network equipment, including Ethernet Switch, Routers in both enterprise and service provider segments

    • The sales of these categories declined by 14 percent in Q1 2020 compared to the last year Q1 2019

    • The huge decline in the network equipment categories was due to supply chain challenges and the slowing down of router investments during this quarter

    • In Q4 2018, the service provider and enterprise router market share reached $4.3 billion, witnessing a significant Y-o-Y growth rate of 16 percent. APeJ led the market, in terms of revenue, growing at a Y-o-Y rate of 22.4 percent, followed by MEA, witnessing a growth rate of 17.6 percent

    • Western Europe and the US witnessed a Y-o-Y growth rate of 12.9 percent and 12.4 percent, respectively, in Q42018. This is owing to the disrupting traditional routing architecture and WAN transport services market. Weak CAPEX from major communication service providers hindered the growth

    • The estimated market size for ethernet switches in Q4 2018 is $7.80 billion. The router market size for the same period is estimated at $4.6 billion

    • The major end-user industries for ethernet switches and routers are cable service providers, communication operators, education, government, information technology, mobile, financial services

    • Most of the major network hardware vendors have a global presence. Few vendors have a very strong presence in APAC

    • North America and Europe are considered to be the mature markets, whereas APAC is considered as the emerging markets. The Middle East and African markets have a low maturity.

    Key Network Hardware Components

    Switch

    • In an Ethernet LAN, a switch determines the destination, where a message has to be sent based on the MAC address in the message•Switches initially performed only the data link layer function (layer 2), whereas the newer version of switches perform routing functions (layer 3) and are also called IP switches
    • Switches are classified based on their speed, form factor and operating layer

    Router

    • A router controls the flow of information within a network
    • A router also acts as a hardware firewall for systems connected to high-speed internet connections such as cable, satellite or DSL
    • A router operates in layer three of the open systems interconnection model

    SDN – Cost Breakup

    • SDN can offer immediate costs savings of about 50 percent for large data centers when compared to the existing hardware
    • The savings potential over the years may decrease with the size of the network, however, savings in the range of 30 to 50 percent can be achieved
    • Google has implemented SDN-based devices in their internal network, which interconnects their data centers and has claimed to have achieved increased efficiency through network utilization of up to 95 percent, which has reduced their OPEX

    Cost Breakup - Typical Hardware vs. SDN Hardware

    SDN facilities implementation of multi-brand equipment in the same architecture, which leads to reduction of acquisition cost

    The efficiency of the network is increased through automation,leading to reduction in maintenance and administrative costs 

    Drivers and Constraints

    • Increase in growth of internet-enabled devices and growing demand for IP telephony devices are the key factors steering the growth for network hardware industry
    • Major factors hindering growth for network hardware industry include the risk of information theft and increasing adoption of low-cost alternatives such as Skype and Google Hangouts


    Drivers

    • Growth in the Usage of Internet-Enabled Devices: To support the rapid increase in an adoption of internet-enabled devices and trends such as BYOD, new network infrastructure is required, which in turn is fueling the growth of the network hardware market.
    • Growing demand for hyperscale datacenters: Enterprises and service providers are opting for hyperscale datacenters (because of the growing IP traffic) that are built with multistage circuit switching networks. Such datacenters require deployment of several routers and switches, and the required amount of server capacity for bandwidth and pipes to cross-connect would be more than 100,000

    Constraints

    • Safety of Cloud Usage and Security of Information: Though network security features have advanced in recent years, there still exist concerns regarding the security of information in the cloud by some verticals, such as pharmaceutical and BFSI.
    • Low Cost Alternates to Telepresence: Enterprises are opting for alternatives such as Google Hangouts, Skype, Apple Facetime and other such applications as low-cost alternatives to established telepresence solutions

    Procurement Practices: Sourcing Models for Network Hardware

    • Enterprises generally prefer a multi-vendor model when procuring network hardware
    • The multi-vendor sourcing model offers better cost-saving opportunities
    • Most Fortune-500 firms prefer the bi-vendor regional sourcing model to reduce risks and to encourage competition
    • The typical contract duration ranges from a period of three to five years depending on the maintenance contract, depreciation of the equipment and technological advancements.