Cisco grabs video infrastructure software, hardware leadership

DetailsEditor | 15 December 2014

Q3 2014 was rather good for technology giant Cisco in video infrastructure according to a study from the Synergy Research Group (SRG).

ciscoIn its report, SRG found that Cisco has a strong market lead in both video infrastructure software and hardware, with its worldwide share of revenues approaching 20% in both segments.

Overall, SRG revealed that quarterly revenues for video infrastructure hardware and software grew by 8% year-on-year to reach well over $10 billion. Hardware revenues grew marginally more rapidly than software revenues, and the analyst added that even though the boundary between hardware and software is often a blurry one, revenues from hardware remain several times larger than that of software.

In terms of the key operators, ARRIS was the closest to competing with Cisco in both sections, ranked second in hardware revenues and third in software actually gaining market share at Cisco's expense in the quarter. Nagra and Rovi were the other top four software vendors, while Pace and Technicolor were ranked third and fourth in hardware revenues.

"Clearly Cisco and ARRIS both benefit by having a broad portfolio of video infrastructure products and solutions, but there remains plenty of room in the market for more focused vendors and niche players," said John Dinsdale, chief analyst and research director at Synergy Research Group. "Within the market some segments are growing extremely rapidly and some new technologies are causing disruptions, so I expect to see plenty of opportunity for smaller vendors to make their mark. Over the last four quarters the highest growth segments have been CCAP, cloud DVR software, TV everywhere software, streaming media devices and search and recommendation software."