Hi Ibexx, Juniper is a good company, great technical talent. I would imagine their niche market makes the marketing/sales channel challenges simpler compared to broader markets that Cisco tackles.
The key point in the article below is, high-end routers currently comprise (only) $2 billion of the $30 billion router market overall. Juniper is a high-end router company. No presence in the other ($28B) market segments.
Juniper will have a marketing/sales challenge ahead, to grow beyond this niche market into other broader markets, while Cisco will have the technical challenge when they re-enter this niche after it firms up. Not sure core is the place to be at the moment. Maybe Cisco's U-turn is the right move.
I think I may place my bet on the volume player, with the sales/marketing channel in broader markets, i.e. Cisco. But after a more thorough review, which means, aside from a small position, probably waiting until after they report.
edit: I just took another look at Cisco's financials on Yahoo. This number, "Net income $1.67 billion" bugs me. Not much room for error. I think I'll wait until after they report.
edit: just heard on the news... gasoline expected to be $2.75 during the summer. Didn't this happen last summer? When I remember John Fowler's post about "PC consumer demand" negatively reacting to increased gasoline prices. Blah. I don't think the stock market may treat any of us too well over the next few months.
Regards,
Amy J From the Juniper Thread...
Message 15632147
Juniper Headed For Bargain Territory
Internet.com
April 5, 2001
High-end router maker Juniper Networks ( NASDAQ:JNPR
A February study by Infonetics Research highlights JNPR's remarkable success in stealing market share from Cisco Systems ( NASDAQ:CSCO ). Juniper's cut of the high-end router market grew to 30% in last year's Q4 from 26% in the third quarter, while Cisco's fell to 69% from 73%. Remember, this is a market that Cisco totally controlled less than 18 months ago. No other competitor has ever posed this kind of threat to the networking giant.
Cisco continues to stumble in the high-end networking market. On Wednesday, the company said it would cease selling an optical networking router acquired through its 1999 purchase of Monterey Networks for $500 million. It was an easy decision by Cisco, since it was having trouble selling any of the expensive fiber-optic routers in the first place.
While Juniper and Cisco are vulnerable to the current spending slowdown on networking equipment, demand for high-speed routers will increase significantly in the long-term. While high-end routers currently comprise about $2 billion of the $30 billion router market overall, it is the fastest-growing segment, expected to reach $12 billion in two years. Even if Juniper's market share stays at 30%, that's $3.6 billion in sales two years from now. |
