Routers and switches Market Cost Structure Intelligence, Best Practices & Day One Analysis Report

Henry Jones16 Dec, 2021Computer & Internet

The recent market trends are the proliferation of software-defined networking (SDN) and network functions virtualization (NFV) along with the growing adoption of 100G Ethernet switches. These will not only pose new demand for routers and switches but also result in technological innovation of network architecture and innovations related to hardware (network and switches in this case). The culmination of these will be a product equipped with the capacity of faster transmission of data packets. From a cost perspective, the products will have a greater bill value on the customer fueling the value-driven growth of the market. The pricing strategies that are most commonly followed in the industry are fixed pricing and cost-plus pricing, both of which ascertain sizable profit margins upon sales. This will ascertain growing profitability per traction of routers and switches.

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