Q1 data from Synergy Research Group shows that Cisco is now the leader in four of the five main video infrastructure market segments, having overtaken IBM in the media data center segment during the quarter. In the fifth segment of video client (set-top boxes, residential gateways and associated software/middleware), Cisco did in fact pass Motorola in the quarter, but grouping together Motorola with new parent company Arris keeps the combined entity well ahead of Cisco. Cisco’s own acquisition of NDS last year boosted its video numbers in a variety of places, but in particular pushed it to a clear leadership position in the content acquisition & preparation segment, which includes smart cards and DRM.
Total video infrastructure revenues for the quarter were $9.1 billion, 3 per cent down sequentially but 3 per cent up on the first quarter of 2012. On a rolling four quarterly basis, annual growth has dropped off a little to 5 per cent.
“This is a large market and some of the bigger segments are relatively mature, so we are anticipating steady rather than exciting growth over the next five years” said Synergy Research Group’s John Dinsdale. “Meanwhile, although Cisco is the clear leader in the market, it’s overall worldwide market share is just 21 per cent and there is a long tail of vendors with small market shares. The combination of relatively low growth rates and somewhat fragmented markets will lead to further consolidation among vendors.”