4/23/2007 -- Another one bit the dust last week, as networking power Avici announced that it plans to exit the core router market to concentrate on other interests.

Avici's departure gives Cisco Systems Inc. and Juniper Networks control of almost 95 percent of the core router market -- with nary a credible competitive threat in sight.

Avici anticipates that it will ship its last core routers by the end of 2007, although it says it will continue to service products that are already deployed in customer environments.

"[This] represents yet another IP core router vendor's failure to gain significant market traction in what is perhaps the toughest of all router markets," noted Glen Hunt, a principal analyst for carrier infrastructure with consultancy Current Analysis. "Although the move does not come as much of a surprise, since Avici has struggled to reach profitability and gain market share against Cisco and Juniper, it will directly impact those service providers that have elected to deploy Avici's router platforms, such as AT&T, IP-Only, Limelight Networks, SURFnet and others."

Although Avici is the No. 3 player in the core segment, its revenues -- which last year accounted for slightly less than 4 percent of all core router revenues -- are dwarfed by those of Cisco and Juniper, who control a combined 94.5 percent of the overall core router space.

"Those two companies have continued to enhance the performance and functionality of their respective systems, making it extremely difficult for Avici to land new opportunities," Hunt said.

In the long term, Avici's departure could also put some of its largest customers -- including AT&T -- up for grabs. In the short term, there are more serious ramifications for Avici, its competitors and the core router market in general. --Stephen Swoyer