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Cisco, Juniper, Lock Down Internet Router Market

Light Reading
News Analysis
Light Reading
2/10/2000

Cisco is partial to telling people that 'virtually all' of the world's Internet traffic travels over its systems.

Not any more.

According to the latest numbers from the Dell'Oro Group (http://www.delloro.com), a market research company, Juniper Networks Inc. (http://www.juniper.net) now accounts for 15 percent of sales of routers destined for the Internet core.

In other words, its beginning to justify at least a small piece of its gigantic $26.35 billion market capitalization.

All right, so 15 percent may not sound like much. But considering the almost total dominance that Cisco Systems Inc. (http://www.cisco.com) has previously enjoyed in routing, it's a highly significant number.

"I'm surprised at how well Juniper has done, and so is Wall Street. It didn't expect Juniper to do this well until next year," says Tam Dell'Oro, founder of the Dell'Oro Group.

And by making even a small dent in the Cisco hegemony, Juniper has perhaps cleared the way for other multi-gigabit and terabit router players to step up and have a crack at the market leader further down the road - if they can iron out the wrinkles in their products.

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