Alcatel Lucent may find it challenging initially to find customers for its core routers considering the strong grip that Cisco and Juniper have over the industry.
FORBES: Juniper Concerned As Alcatel Lucent Targets Core Router Market
Although enterprise routers remain the single largest profit driver for Cisco, we note that the service provider router segment (including both edge and core routers) does generate a combined profitability beyond the individual contribution from the enterprise segment.
With about 24% market share of the edge routing industry currently, Alcatel Lucent has done well to find a place in many networks and can now use that as a leverage to push its core routers as well.
FORBES: Juniper Concerned As Alcatel Lucent Targets Core Router Market
The T4000 and PTX core routers launched in 2011 have done well so far, and the new line of MX edge routers and the ACX Universal Access product family should help Juniper continue to win clients in a fast-changing environment.
FORBES: Juniper Unveils New Strategy Mitigating Software-Defined Network Threat
While the enterprise router market will benefit most directly from expanding budgets at large companies, a recent report from Infonetics Research suggest that improvement in IT spending is permeating the service provider market (including core and edge routers) as well.
But the core of Cisco's business, selling routers and switches, is hardly immune.
However, while Alcatel Lucent may have not had a core routing solution till now, its edge routers are fairly well-known.
FORBES: Juniper Concerned As Alcatel Lucent Targets Core Router Market
With carriers moving to higher-speed 4G networks like LTE to support the explosion of data traffic caused by the rapid adoption of cloud computing solutions and burgeoning video usage, Alcatel Lucent is looking to take advantage of the industry transition and leverage its existing base of edge routers to find an opening in the core router market.
FORBES: Juniper Concerned As Alcatel Lucent Targets Core Router Market
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