The IP Effect


Juniper Networks, in a remarkable show of strength beat its estimates especially in the Internet switching business. Juniper reported adjusted net income (7 cents), above expectations (5 cents). It has forecasted a better first quarter 2004. Like a handful of others, the Cisco-chaser is doing well primarily becuase there is a strong demand for anything related to “IP” and “IP Services.” While the telecom spending in general seems to be weak, the IP and new network related spending is picking up. I had lunch with one of the executives from a Cisco rival yesterday and he explicitly mentioned that the enterprises have started to turn up spending on “IP” related services such as managed VPN and managed firewall, among other things. Demand for routers is picking up. It seems like they are all luxuriating in the “IP effect.” Other players who could do well in coming months include Advanced Fiber, UT Starcom, Alcatel, and Nortel.

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