Cisco Systems Inc snatched the largest chunk of the Ethernet LAN networking equipment market in 1997 – a year that saw sales of hubs erode in favor of switched networks and further consolidation of market share between the top three vendors, according to US consultancy firm the Dell’Oro Group. Cisco grew its LAN revenues by 73% from 1996 to lead the market with $2.1bn revenues and a 23.4% market share, ahead of 3Com Corp, which took a 16.7% share of the market and $1.5bn in revenues. Bay Networks Inc ranked third with a 15.7% share of LAN Ethernet sales and $1.4bn revenues. Cabletron, faced with revenues declining 2.4% to $1.1bn. came in at number four. The most startling growth rates came from from Intel Corp, whose revenues rose 315% to $79m in the year. But smaller networking players including Digital Equipment Corp, Madge Networks NV, and Hewlett Packard Co, all showed declining revenues. One of the major trends that Dell’Oro noted during 1997 was a move away from hub based LANs to switched networks. The market for shared Hubs slipped by 18% over the year, while sales of switches rose by 50%. In a commoditizing market, prices per port declined rapidly, with over all port shipments growing 31% to 1997, against overall market growth of 15%.
