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CIR Reports on Metro
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CHARLOTTESVILLE, Va. -- Communications Industry Researchers, Inc. (CIR) today began shipping its much-anticipated report on the metro core optical networking market. The approximately 300-page study provides candid insights and perspectives on the market as well as technologies and companies shaping the metro space. Executives and senior managers at over 60 companies were interviewed in the process of researching the market.
One of CIR’s conclusions in the report is that regardless of how poorly Wall Street currently views the future of the Lucents, Nortels and other giant equipment companies, these larger firms will continue to remain important players in the metro arena. They have substantial pre-existing installed bases that will not be easily abandoned by customers. The demands that large Incumbent Local Exchange Carriers (ILECs) place on their suppliers for hardware, support, software functionality and volume shipments mean that large vendors are always virtually guaranteed serious consideration for future equipment purchases.
CIR research also shows that, while companies like Lucent, Nortel and Fujitsu offer products which no one would describe as “best of breed”, their sheer size along with their familiarity with the operations systems of the RBOCs, makes them hard to be ignored.
However, while acknowledging that the established gear vendors are the companies to beat in the metro space, the new CIR report is not very bullish on Tellabs, which has lost key ground in the optical market through its failure to land the Verizon DWDM contract recently. Fujitsu has had problems with being able to capitalize on its installed legacy OC-48 SONET base in going to OC-192 and next-generation types of boxes. Then, there is Ciena, which, according to U.S. carriers, has yet to show that it can translate its tremendous success with the long-haul market into a strong metro presence.
CIR’s report identifies Cisco as the vendor of choice in the next-generation SONET ADM market. Cisco has sold over 30,000 of its ONS 15454 product line, has recently completed Telcordia’s OSMINE process that Regional Bell Operating Companies (RBOCs) require and attained price per port levels that are a huge competitive advantage. While the supplier needs to make necessary development work on the 15454, CIR has received extremely positive feedback about Cisco from service providers. Another company that bears watching is ONI Systems, according to CIR, since it is also generating significant interest from RBOC accounts. CIR is also very positive on Riverstone and LuxN as well as, to a slightly lesser extent, on Extreme, Luminous and White Rock Networks.
Communications Industry Researchers Inc. (CIR) |
