Light Reading
Second-quarter figures show that it's gaining ground on the big telecom equipment vendors

Cisco's Optical Shipments Soar

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

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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed