Zoltan, why don't we look at recent events as opposed to trading personal opinions which means diddly squat (did I spell that right?)
This relates to the recent problems Cisco has had with Sprint and Telia, two major Carriers by anyone's definition. And if you think reputation is not important in the Public Infrastructure network market, you are dreaming big time!
WHAT HAPPENED?
1. Sprint Corporation canceled a $500 million plan to upgrade its
long-distance phone network with equipment from Cisco Systems and
Tellabs.
2. After working with Cisco for three years, and dedicating 120
Sprint employees to the "JCS 2000" development effort, the deci-
sion to cancel the order was made partly because Cisco was late in
developing a product Sprint had ordered.
3. "We're projecting a pretty significant increase in voice traffic
next year, Nortel switches will be in place longer than we thought
because of the growth in voice traffic. We need the DMS 250. The
data switches weren't there yet," said Russ Robinson of Sprint.
Sprint is evaluating Nortel's Succession portfolio that offers --
in a single solution -- what Sprint had hoped to get from Cisco,
Tellabs and Telcordia.
4. Cisco spokesman Doug Wills downplayed the canceled order, saying,
"From a revenue standpoint, this was less than $25 million."
WHAT DOES THIS MEAN TO CUSTOMERS?
1. Cisco did NOT deliver the products to Sprint Corporation, the
nation's #3 long distance player. Cisco did NOT deliver the
products to Telia either (see Take Action Memo # 99-04). Why
should I think Cisco would demonstrate any better performance for
my business?
2. Cisco does NOT do what they say they will do. Cisco does NOT know
how to service the needs of carriers.
3. Nortel Networks has developed and demonstrated the solution set
that evolves voice and data networks into a next generation net-
work. Cisco has yet to earn this credibility. Nortel Networks
continues to deliver multi-service IP products and networks on
time.
WHAT SHOULD I SAY TO MY CUSTOMERS?
1. Sprint Corporation has canceled an estimated $500 million contract
with Cisco. In doing so, they made a decision to continue buying
Nortel Networks current voice switches and are evaluating our
Succession offerings for their next generation network.
2. Cisco claims a focus on the Service Provider market but has yet
to deliver "Real World'" solutions. Cisco's inability to deliver
has resulted in Nortel Networks winning deals at Telia
($60 million), and now the high-potential opportunity with Sprint.
3. According to Paine Webber's Walter Piecyk, Nortel Networks is the
PRIMARY vendor behind Sprint's Integrated On-Demand Network (ION)
and is the primary benefactor from the increased capital spending
of telecom operators throughout the globe.
4. Nortel Networks is the leader. Sprint and Telia both know it. You
should, too. |
