Juniper pummels Cisco


Juniper Networks, its recent problems with the NetScreen acquisition not withstanding seems to be holding its own against Cisco Systems. Recently, the company announced that it had won a much larger piece of the China Telecom deal. Today, more good news for the company. Dell O’ro Group released its 3Q market share data. Cisco lost market share, and Juniper gained some ground according to the numbers. Juniper’s total share of routing business was up 2% to 15%. Cisco dropped a percent to 77%.

In the core routing, Juniper’s share was up 6% to 38% while Cisco lost ground, down to 57% from 61% in Q2 2004. In the edge routing, where Cisco is supremely in control, Juniper posted healthy gains: up to 25% from 19% in Q2, while Cisco ceded 5% market share to 62%. Infonetics says that the worldwide revenue for service provider routers and switches totaled $1.6 billion in 3Q04, up 11% from 2Q04, and up 28% year-over-year.

They estimate that Cisco’s core router revenue was up 5%, and still firmly holds the top spot for core router worldwide revenue market share at 58%, down two points this quarter Juniper’s core revenue grew 26%, giving them the second spot with 36% of the worldwide core router market, up six points. The edge and core router market topped $1 billion in the quarter for the first time. Those are astonishing numbers for Juniper. If that is not enough, analyst Susan Kalla says that Juniper will displace Cisco in the AOL network as the prime vendor for AOL. She estimates this could add $50 million in sales at Juniper for four years. Could this be a temporary situation, as Cisco ramps up its CRS-1 product? Looks like! Also whenever Cisco loses market share like this, it goes on a sales rampage, which can be quite overwhelming for competitors.

* Titans of Tech, Scott Kirens
* Cisco, the New Phone Company

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