Light Reading

Cisco's Optical Shipments Soar

Light Reading
News Analysis
Light Reading
9/7/2000
50%
50%
Repost This

Second-quarter shipment values for the major players in optical networking show some surprises.

According to The Dell'Oro Group, the overall market for optical gear, including Sonet/SDH and DWDM short- and long-haul equipment, grew 14 percent to $5.937 billion during the last quarter. But not all players are keeping pace. In fact, individual growth rates for last quarter were so uneven that, if trends continue, market share figures could change.

Cisco Systems Inc. (Nasdaq: CSCO), for instance, outstripped all leading vendors in quarterly growth, according to Dell'Oro, despite its position as bottom dog in terms of market share. Another optical player, Ciena Corp. (Nasdaq: CIEN), which Dell'Oro ranks sixth in market share, also seems to be pulling ahead, with 28 percent growth in its sales for the last quarter.

In the meantime, optical growth seems to be dwindling into the red for market leaders Alcatel SA (NYSE: ALA) and Lucent Technologies Inc. (NYSE: LU).

2Q00 Growth: Optical Networking Vendors According to Dell'Oro, Cisco showed a 53 percent increase in sales, doing better than market leader Nortel Networks Corp. (NYSE/TSE: NT), which Dell'Oro says showed 34 percent growth in optical sales for the second quarter.

Cisco's been trying hard to bulk up optical sales by acquiring a string of companies, including Cerent Corp., Monterey Networks, Pirelli Optical Systems, and Qeyton Systems. And the strategy seems to be working, at least in part: Cerent has been a hit for Cisco (see Cisco Beats Street, Cries 'Optical' ).

"Cisco's doing amazingly well with its Cerent product," says market analyst Scott Clavenna. "They did a good job of establishing it as a next-generation Sonet product at OC48 when everyone else had OC3 and OC12. Also, they're the only vendor shipping a product in volume right now."

Whether Cisco can keep the momentum going is open to question, however. For one thing, it doesn't seem to be having the same luck with its other acquired gear as it has with Cerent. (See Cisco Puts New Spin on Pirelli). For another, the competition is growing, with newbies like Alidian Networks Inc., Atoga Systems, and Cyras Systems Inc. eager to stake their own claims in the coming months.

Cisco's also got lots of competition in the routing arena, where Dell'Oro notes it's battling Juniper Networks Inc. (Nasdaq: JNPR). (See Cisco Takes a Dip.) How that fight plays out also could impact Cisco's actions in the optical arena.

While some vendors are surging ahead, others seem to be losing ground just as quickly. Lucent, for example, showed a 10 percent reduction in optical growth, even though Dell'Oro says its overall market share makes it the number two player in optical networking. Alcatel is showing a 7 percent loss in growth, according to Dell'Oro.

But Clavenna cautions against drawing too many conclusions from the figures. "Alcatel is doing better with its DWDM products. It's not doing as well with Sonet. When you clump all of the optical networking gear this way into a single number, it doesn't tell the whole story."

An Alcatel spokesperson also told Light Reading that "Dell'Oro's figures don't take into account portions of the optical transport market such as submarine networking and digital cross-connects, where Alcatel has a leading presence."

Lucent had not replied to inquiries about Dell'Oro's figures at press time.

-- Mary Jander, senior editor, Light Reading http://www.lightreading.com

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
LRTV Custom TV
Wind River Demonstrates Carrier-Grade Software for NFV

4|22|14   |   5:00   |   (0) comments


Wind River VP of Product Management, Glenn Seiler, takes a look the industry's first and only complete NFV software platform designed specifically for the unique carrier-grade and high-performance needs of telecom networks.
LRTV Documentaries
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (7) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
LRTV Custom TV
VMware CEO Pat Gelsinger at Mobile World Congress

4|1|14   |   3:41   |   (0) comments


VMware CEO Pat Gelsinger speaks to Heavy Reading about the value of virtualization spanning from the data center to service provider networks to mobile devices.
Hot Topics
WhatsApp Threatens Carrier VoLTE
Sarah Reedy, Senior Editor, 4/18/2014
The Hungry, Hungry Cloud
Dan Jones, Mobile Editor, 4/22/2014
Who's Ready to Play Broadband?
Carol Wilson, Editor-at-large, 4/21/2014
Volvo: AT&T HSPA+ Can Drive My Car
Sarah Reedy, Senior Editor, 4/16/2014
Report: NFV/SDN Standards 'Myopic' on Service Management
Carol Wilson, Editor-at-large, 4/16/2014
Like Us on Facebook
Twitter Feed