Acme Packet - Competitors

Acme Packet Competition

Now Viewing Acme Packet's competition in: Computer Networking Equipment Manufacturing

Recent Developments

US Broadband Availability Low in Developed Nations - In a survey of the 30 nation members of the Organization for Economic Cooperation & Development about broadband availability, the US ranks 15. The FCC suggests that the US is challenged by a relatively sparse population spread out over a larger geographic area. Building out broadband networks to serve rural customers may not offer a good ROI for service providers. More advanced Internet media features and e-commerce are likely to drive more broadband build-out, although government incentives may be needed.

Cisco Denies Aiding Chinese Censorship - Cisco's general counsel, appearing before the Senate Judiciary Committee in May 2008, denied allegations that the company offered the Chinese government technical help in cracking down on illegal spiritual group Falun Gong. The Global Internet Freedom Consortium accused Cisco of offering to help censor the Chinese Internet. The Chinese market is vitally important to Cisco, as it accounts for the largest part of the company's Asia-Pacific sales. Cisco competes in China with local player Huawei Technologies and US companies like Juniper Networks.

Managed Services Market Poised to Grow - A study by telecom and software consulting firm Ovum suggests that computer networking equipment makers stand to gain as increased demand for managed services drives equipment sales. The study predicts that the worldwide market for managed services will grow to $66 billion by 2012, or annual growth of 18 percent over four years. The study, commissioned by Cisco, surveyed 1,300 enterprise managed service users at 14 companies. The managed services most in demand include VPN services, managed IP, managed VoIP, and managed security.

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.

Full Industry Overview For Computer Networking Equipment Manufacturing

Computer Networking Equipment Manufacturing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US other computer peripheral equipment, an indicator of computer networking equipment, is forecast to grow at an annual compounded rate of 11.4 percent between 2007 and 2012.

Computer Networking Equipment Growth Strong

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.