I have been saying backbone routing and I have not been clear.
Junipers routers are not for transmission, that is the job of optical technology. I have been calling them backbone routers but I didn't mean they were for transmission. Transmission is the equipment that does longer-distance passing of voice/data/video from an aggregated point. Optical technology doesn't calculate. It takes an operating system and ASIC's to identify packets and route/switch them down their merry way. Routing is the spot between access and transmission. Access --> Routing (M40) --> Transmission --> Routing (M40) --> Access.
There are different kinds of routers designed for what the service provider needs it to do at that particular point in the network. Juniper does the routing at the most intense points and that means it has to be much faster than a router that sits in an area with less traffic like an enterprise router.
My point was that network speeds have to increase in order to keep up with more users sending more emails with more attachments more multimedia yadda yadda yadda.
Juniper is sitting in a good spot because its routers do the heaviest spots. Since all points will get more and more traffic, the speeds that are capable today at the busiest spots eventually go out and become tomorrow's speeds at less busy spots and the busiest areas need to once again be upgraded. Juniper is the only one with a router in production so they have a good lead in this market (although Cisco will eventually get into the act). Both will exist because service providers want to have two so that they don't have to buy from a monopolist. Hence, the opportunity for another big telecomm company to exist along with Cisco.
Cisco has got so many things on its plate trying to ensure a spot in the transmission market that it can't devote all its resources toward Juniper or Redback. There is opportunity all over the place as the world of telecommunications undergoes tremendous change.
This is spawning a lot of startups as extremely smart people go off to do something entrepreunerial and focus on an area where Cisco and Lucent can't. This is where you can make big money (if the companies execute) and you don't have to worry about betting against Cisco or Lucent, there is lots to go around.
------------------------------------------------------------08/26 3:24P (DJ) =DJ Cisco CEO, At Dell Conference, Defends Cerent Purchase
DJ Cisco CEO-2: Internet Has Become A Business Imperative
Chambers, speaking Thursday on the final day of Dell's two-day conference, ended the event the way some of his fellow technology industry executives had begun it - by touting the Internet and e-commerce as business imperatives.
"This is not just a nice productivity tool, it's survival," Chambers said, echoing comments by Dell Chief Executive Michael Dell, Microsoft Corp. (MSFT) Chairman Bill Gates and Intel Corp. (INTC) Chief Executive Craig Barrett.
Dell's event, dubbed "DirectConnect," was intended to showcase Dell products and services. Several hundred Dell customers and corporate executives attended the final day.
Chambers said Cisco already does about $33 million a day in business over the Internet, edging Dell's $30 million a day.
He said he expects overall worldwide e-commerce activity to climb to $1.1 trillion by 2002 from slightly over $100 billion anticipated for 1999. By 2010, half of the U.S. gross domestic product could stem from Internet-related
transactions, he said.
"Almost regardless of which industry you're in," use of the Internet will determine a company's survival, Chambers said. The Internet "is truly the competitive advantage of the future."
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This is an sector I want to trade from the long side. Shorts are getting run over and they just don't understand what is going on. Markets like this have never developed this fast.
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