Ethernet equipment

Nokia Siemens, Juniper Team on Ethernet

Clearly deciding that the sum of their parts is greater than the whole, standing partners Juniper Networks Inc. (NYSE: JNPR) and Nokia Networks have decided to pool their resources to attack the growing carrier Ethernet equipment market.

Until now, Nokia Siemens has used Juniper as its IP routing partner. (See Nokia Siemens Clings to Juniper.)

Now, though, the two companies are pooling their Carrier Ethernet resources, a move that will strengthen their positions as they compete with the likes of Alcatel-Lucent (NYSE: ALU), Cisco Systems Inc. (Nasdaq: CSCO), and Huawei Technologies Co. Ltd. for business.

And there's plenty of business to win. According to the latest Heavy Reading CESR (Carrier Ethernet Switch Router) Market Tracker figures, the Carrier Ethernet switch market is set to grow from $2.1 billion in 2008 to more than $3.2 billion in 2012. (See CESR Market Likely Flat in 2009.)

The partners say they can offer operators an "end-to-end Carrier Ethernet solution" comprising Juniper's MX metro switches, NSN's A-series metro access switches, and the latter's Aspen management software, and plan to have the combined offering ready for the market in the second half of this year. (See Nokia Siemens Shares Ethernet Secrets.)

At first glance, the main technical hurdle the two companies appear to face is getting the Aspen software to work with Juniper's switches.

NSN says it plans to demonstrate a combined setup with Juniper at next week's Mobile World Congress event in Barcelona, where it will run services over HSDPA, with the base station being "backhauled over the complete chain of Carrier Ethernet Transport enabled platforms," including Juniper's MX Ethernet switch.

— Ray Le Maistre, International News Editor, Light Reading

delphi 12/5/2012 | 4:11:53 PM
re: Nokia Siemens, Juniper Team on Ethernet Juniper's MX is a decent product, but very late to market. Siemens acquisition of an Ethernet switch vendor has produced little tangible results. Nokia must thinkg that their position in mobile will drive sales for Ethernet backhaul. This will be a real stretch. Very crowded market with little to no differentiation between products and vendors. Feels like a distribution price war with very little value add.

Juniper continues to partnet vs. establishing their own direct channel. This will continue to hurt them in getting to the next level.
michaelflorida 12/5/2012 | 4:11:49 PM
re: Nokia Siemens, Juniper Team on Ethernet Long time (approx. 2001!) ago Unisphere Networks was a wholly owned subsidary of Siemens.
Then in 2002 Juniper came to buy Unisphere from Siemens, see http://www.lightreading.com/do...
Some time passes till Siemens and Nokia merge (approx. 2007), to form the joint venture Nokia Siemens Networks.
And nowadays Nokia Siemens Networks and Juniper move closer together.
So finally they seem to be in a similar situation as they used to be less then 10 years ago. OK, company names have changed, managers are not the same anymore and lots of employees had to leave the sinking ships, etc.

I sometimes wonder, what is the meaning of long term strategy, if at the end everything seems to be the same as it was long time ago. Why going through all the hassles of change (management)?

greatwall7 12/5/2012 | 4:11:49 PM
re: Nokia Siemens, Juniper Team on Ethernet Long back, Ericsson acquired Redback and it now owns the IP hardware product line.

Huawei has its own products such as Routers, etc.

ZTE also has its own IT hardware products.

Apart from managerial control and ownership, it becomes very hard to marry the technical interfaces between the telecom products and the IT domain products ( e.g Cisco/Juniper etc) although all boast of open-standards. If any enhanced end-to-end customisation for better QoS etc is needed, it is very difficult to implement those , in the case of such hybrid technical marriages.

As the GSM moved from pure circuit switched to Release 4 split architecture, the importance of IT hardware in the backhaul and in almost all interfaces require careful collaborations.

Nokia & Siemens,after their merger, should decide to scrap the Siemens old product line altogether, stick to Nokia product lines without further internal politicising due to Nokia's forward looking, open and better products; and then think of ways to enhance their own product lines for a better Telecom domain-IT domain integration, than just to toggle between Cisco and Juniper.

Just my 2 cents.
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