Nearly two years ago, I wrote a piece for the old Red Herring called, Gorilla in The Mist. The argument was that, with Lucent and Nortel down on the mat, US phone companies would need to work with a larger more established player, and while everyone talked Cisco, I argued that Alcatel would become a Bell favorite. I think the Project Light Speed win validates that argument. Our friends at Current Analysis agree and say:
Alcatel needed a major win with a U.S.- based service provider to truly establish itself as a serious player in the carrier infrastructure market in the United States. Alcatel needed external validation that the IP centric product strategy, largely based upon acquisitions of companies, it has been executing for the last couple of years is coming to fruition and beginning to generate significant revenue streams for the company. Alcatel needed to show the world that, although it may have gained much of its technology and products through acquisition, it had chosen best-of-breed products that could compete on their own merit against products and solutions from rivals such as Cisco, Nortel, Lucent, Juniper, and Siemens.
The only weakness in this portfolio is the 7750 SR. They should buy a rival, or seriously upgrade the capacity of this puppy. I think this is one advantage Juniper has over Alcatel. Juniper has a competitive product portfolio in access, edge and core routing. I think they need to get some optical mojo to compete in the FTTP home. I should expect Juniper to make some moves here.