Dataquest Reports Robust Growth for Remote Access Systems Market Through the Year 2000; Access Concentrators Will Drive the Market's Success Through the End of the Century.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 27, 1997--As telecommuting and the Internet become more prevalent in the next few years, the worldwide remote access systems market will grow from $4 billion in 1996 to $12.2 billion in the year 2000, according to Dataquest.

The remote access systems market consists of remote access servers, concentrators, and low-end routers. While the market is poised for rapid growth, small vendors will struggle to survive in the marketplace.

"Increased competition in the remote access systems market will favor larger vendors, and small players will find themselves forced out of the market because of declining profit margins and restricted access to channels," said Bobbi Murphy, director and principal analyst for Dataquest's Remote LAN and Internet Access Worldwide program. "The large vendors will engage in an epic battle for dominance in the service provider market, where many will be bloodied, some perhaps mortally."

The access concentrators market is the fastest growing segment with a compound annual growth rate of 50 percent through the year 2000. Access routers made up 55 percent of the remote access systems market in 1995, but by the year 2000, access concentrators will move into the top position with 43 percent of the market (see Table 1). -0-

Table 1
Worldwide Remote Access Systems Revenue Market Share Estimates
(Million of Dollars)

                           1995   1995 Market       2000  2000 Market
                        Revenue     Share (%)    Revenue    Share (%)

Access Routers            1,486           55       4,877          40
Access Servers              658           25       2,013          17
Access Concentrators        536           20       5,281          43
Total Revenue             2,680          100      12,171         100

Source: Dataquest (January 1997)

Access concentrators are very high-density systems with channelized T1/E1 or T3/E3 interfaces that combine modem pools, routing, and remote access server functionality into a single platform. Remote access routers are being used to connect remote access servers and concentrators to enterprise and public networks and to connect telecommuters to corporate offices.

Additional information about this market is available in the Dataquest Perspective titled "Remote Riches-Remote Access Systems Forecast: 1996 to 2000." This report provides detailed forecasts through the year 2000 for remote access servers, remote access concentrators, and low-end routers for branch offices, small offices, and home offices. The report also includes unit and port shipments, end-user revenue, and average selling prices for each market segment.

To purchase this report, or to subscribe to Dataquest's Remote LAN and Internet Access Worldwide program, please call 800/419-DATA. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com .

Dataquest is a 25-year-old global market research and consulting company serving the high-technology and financial communities. The company provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Dataquest is a Gartner Group Company.

CONTACT: Dataquest

Tom McCall, 408/468-8312

[e-mail]