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Cisco Confirms AT&T Core Win

Raymond McConville
News Analysis
Raymond McConville
12/10/2007
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Cisco Systems Inc. (Nasdaq: CSCO) announced today that AT&T Inc. (NYSE: T) has chosen the CRS-1 router for its core network.

AT&T's previous core IP equipment supplier, Avici Systems Inc. (Nasdaq: AVCI; Frankfurt: BVC7), exited the router business back in April. Light Reading reported then that AT&T would choose Cisco as its new core router supplier. (See Avici Abandons Routing, Targets PBT and Cisco Gets the Call for AT&T's Core.)

News of Cisco's contract win comes as AT&T continues to expand the capacity of its global IP network. The CRS-1 routers will be used mostly for those upgrades, while the old Avici routers will continue to play a significant role in AT&T's core. (See AT&T Parties Like It's 1999.)

"I can tell you that the Avici equipment is still being used for the current OC192 connections, and that will continue to be the case for some time," said an AT&T spokesman.

"For the routes that are being upgraded, those of course will shift over to the CRS-1 platform, while the Avici equipment will continue to support the 10-Gigabit routes."

Cisco has scored a number of core router wins recently that have helped its market share battle against Juniper Networks Inc. (NYSE: JNPR). The IP giant announced last week it had won core network upgrade business with XO Communications Inc. and Savvis (Nasdaq: SVVS). (See Cisco Scores Core Wins and Juniper Attacks Cisco's CRS-1.)

The rivals are also battling hard to gain the upper hand in the data center market, and are competing with Alcatel-Lucent (NYSE: ALU), Ericsson AB (Nasdaq: ERIC)'s Redback business, and Huawei Technologies Co. Ltd. in the IP edge router sector. (See Cisco, Juniper Ready Data Center Assault, AlcaLu Identifies Deep Packet Potential, AlcaLu Touts IP Upgrades, AlcaLu's Router Run Continues, and Redback Beats AlcaLu to French Deal.)

Avici, meanwhile, is now focusing on its new control plane software called Soapstone. Investors balked at the shift in direction, but Avici says it's generating tremendous interest from carriers about its new product. (See Avici Amped Up for Soapstone Launch.)

— Raymond McConville, Reporter, Light Reading

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Pete Baldwin
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Pete Baldwin,
User Rank: Light Beer
12/5/2012 | 2:57:34 PM
re: Cisco Confirms AT&T Core Win
What's the over/under on how long those routers stay active? Years, probably...
Honestly
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Honestly,
User Rank: Light Beer
12/5/2012 | 2:57:32 PM
re: Cisco Confirms AT&T Core Win
I find it more than interesting that routers will live even longer. I also wonder how big of win this deal is for CSCO. Does not sound that impressive and gives Juniper T1600 some opportunity for the rest of the core as the Avici's get retired. Most tier 1's have a multi supplier strategy, although it appears that ATT may have not prior. Any $ figure given with this win?
prs6str
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prs6str,
User Rank: Light Beer
12/5/2012 | 2:57:31 PM
re: Cisco Confirms AT&T Core Win
Honestly - interesting twist. Cisco wins the core at AT&T and that isn't impressive. Juniper isn't even mentioned, yet they have opportunity. That would appear to be an odd conclusion.

This article sounds like Avici is toast, but AT&T doesn't want to be the one responsible for their stock going to zero, so they make all sorts of comments how they aren't going anywhere soon. Everyone knows Avici is no longer a player in routing.
tsat
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tsat,
User Rank: Light Beer
12/5/2012 | 2:57:31 PM
re: Cisco Confirms AT&T Core Win

Any way you spin it, this is a huge win for Cisco taken at the cost of Juniper. Anyone who doubts the power of Cisco selling to SPs is foolish.

-tsat
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