This is another bad news for CSCO. Had been saying it all along, competitions will hurt the business, revenue will suffer and the stock price will very likely go down substantially. all imo.
=============== extract from the article
With general availability of its next-generation edge
switch delayed, Cisco Systems Inc. is missing out on
one of the fastest-growing sectors of the booming
Internet service provider arena and at the same time
exposing to rivals a vulnerable spot in its product
arsenal.
Cisco first previewed the ATM-based multiservice edge
switch--the MGX 8800--last June and promised to ship
the device late last year. But the San Jose, Calif.,
company has hit a four- to five-month delay in delivering
the switch, confirmed Don Listwin, Cisco's senior vice
president of product development.
The delay comes as established and upstart
competitors roll out new next-generation products, each
of which could threaten Cisco's ascendancy in IP
carrier equipment.
At least one such vendor, Juniper Networks Inc., of
Mountain View, Calif., appears to be making inroads
with its M40 Internet backbone router, which competes
with Cisco's 12000 router.
"Six months ago, being late wasn't a problem," said Joe
Skorupa, an analyst with Ryan Hankin Kent Inc., in San
Francisco. Now, "[Cisco] is under assault in every
segment of the carrier market because viable
competitors are appearing. New edge routers are going
after the [Cisco] 7500 replacement; there's strong
competition in [digital subscriber line] and very strong
competition in ATM [asynchronous transfer mode]. The
game has changed on them."
This activity hasn't been lost on Cisco, whose 10-Q
filing last week with the Securities and Exchange
Commission stated that the company faces increased
competition from "large telecommunications equipment
suppliers and well-funded startup companies."
===================================================== |
