Articles for Telecom Hardware

F5 Flexes Muscles in the Application Delivery Market, Stock Worth $127

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Monday, January 30th, 2012 by Trefis Team

F5 Networks (NASDAQ:FFIV) announced results this past week. F5 Networks, Inc. is the global leader in application delivery networking, providing technology that optimizes the security and performance of servers, data storage devices and other network resources. Better execution and a focus on enterprise and service providers has helped F5 Networks emerge as the leader in the application delivery controller (ADC) market, leaving networking giant Cisco Systems (NASDAQ:CSCO) behind. Other competitors in the information technology sector include: Blue Coat Systems (NASDAQ:BCSI), Radware (NASDAQ:RDWR), and Riverbed Technology (NASDAQ:RVBD).

We have a revised $127 price estimate for F5 Networks, which is around 5% ahead of its current market price as well as our previous estimate.

Motorola Solutions Earnings Preview: What We’re Watching Next Week

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Friday, January 20th, 2012 by Trefis Team

Motorola Solutions (NYSE:MSI) is scheduled to announce its Q4 FY11 results January 25. During the earnings call, we will be closely watching the company’s revenue growth numbers for any signs of weakness due to the slowdown in government spending. Even enterprise investment for the quarter may have been impacted by macroeconomic uncertainties due to the ongoing euro debt concerns. Motorola Solutions may, however, be able to meet its increased guidance for the year overall. It competes with Cisco (NASDAQ:CSCO) and Honeywell International (NYSE:HON) and sells wireless equipment such as two-way radios used by police and handheld computing devices used in retail stores.

Cisco Releases New Cloud-based Network Management Service OnPlus

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Tuesday, January 3rd, 2012 by Trefis Team

Cisco (NASDAQ:CSCO) recently released a new cloud-based service, called OnPlus, that helps its small-business partners provide network assessment, management and advisory services to their customers more easily. One of the major features of the new offering is that it allows value-added resellers (VARs) the ability to provide remote visibility of a customer’s network and attached devices. Cisco primarily competes with other network equipment and service providers like Juniper (NYSE:JNPR) and Alcatel-Lucent (NYSE:ALU).

We currently have a $21.21 Trefis price estimate for Cisco, about 15% above the market price.

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Juniper Worth $28 Despite Near-Term Market Jitters

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Friday, December 30th, 2011 by Trefis Team

Juniper Networks (NYSE:JNPR) is trading below $20 as lower capital spending in Q4’11 from both service providers as well as enterprise – the two client categories it caters to – seems to be taking its toll. Juniper’s competitor Alcatel-Lucent (NYSE:ALU) has also slumped in the wake of concerns about the macro environment. However, the networking market leader Cisco is doing slightly better than its competitors.

We have a Trefis price estimate of $28.13 for Juniper Networks’ stock based on our DCF valuation model. Below we take a look at why Juniper looks oversold at current price.

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Cisco’s Cloud Efforts Carry Stock to $21, Leads Data Center Infrastructure Market

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Tuesday, December 20th, 2011 by Trefis Team

Cisco (NASDAQ:CSCO) ousted HP (NYSE:HPQ) to become the leader in the global data center infrastructure market, according to a recent report by research firm Canalys. IBM (NYSE:IBM), Dell (NASDAQ:DELL) and EMC (NYSE:EMC) came in at third, fourth and fifth respectively. Cisco benefited from the growth of data center networking and security, including switches, routers, network security, storage networking and application delivery networking, within the market which boosted it to the numero uno position.

We currently have a $21.21 Trefis price estimate for Cisco, about 15% above the market price.

Juniper Jumps Back to #2 in Network Security Market, $28 Fair Value

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Monday, December 12th, 2011 by Trefis Team

According to a recent report by research firm Infonetics, Juniper Networks (NYSE:JNPR) jumped to second spot in the network security market pushing Check Point Software Technologies (NASDAQ:CHKP) to third position. Juniper network security appliance and software revenue increased 22% sequentially compared to the overall market growth of 6.4% in Q3 of 2011. Cisco (NASDAQ:CSCO), however, maintained its lead in the market although its network security appliance and software revenue grew only by 4.5% over the last quarter. The global network security appliance and software market for the quarter was $1.46 billion.

Cisco Notes: Expands WLAN Market Share, Announces Tablets & Private Cloud Initiatives

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Friday, December 9th, 2011 by Trefis Team

Cisco (NASDAQ:CSCO) held on to its leadership position in the wireless LAN (WLAN) market which grew by 10% sequentially in third quarter of 2011 to $881 million, and is well on track to reach $3.2 billion in 2011, a 21% increase over 2010, according to a recent release by research firm Infonetics. The WLAN market is a high growth market with the rapid adoption of mobile devices fueling the demand. It has also proved to be among the few immune to economic concerns. Cisco competes with firms like Aruba, HP (NYSE:HPQ) , Juniper Networks (NYSE:JNPR) and Motorola (NYSE:MSI) in the WLAN market.

We currently have a $21.21 Trefis price estimate for Cisco, with enterprise WLAN making (nearly 80% of total WLAN market) 2.5% of our valuation for the stock. Below we take a look at other highlights of the week for Cisco.

See our full analysis on Cisco

Smaller and Larger Cius Coming in 2012

On Monday, Cisco announced it will be releasing both smaller and larger versions of its existing Cius tablet in the new year. Cisco in the past year has focused on positioning Cius as a key component of its collaboration strategy, a $42 billion opportunity according to the company.

While the Cius adoption has been slow, primarily due to its $725 price point, Cisco is expecting the launch of AT&T carried model of the device this month will change that. Cisco aims to capture 10 percent of the projected growth in Android tablet devices or a figure of a million devices in a couple of years. It is also worth noting that earlier this week, Dell (NASDAQ: DELL) pulled the plug on its Android-based Streak 7 tablet as it failed to lure customers away from Apple‘s (NASDAQ:AAPL) iPad.

Cisco Introduces CloudVerse

In a separate release on Tuesday, Cisco introduced Cloudverse, a framework that combines the foundational elements needed to enable organizations to build, manage and connect public, private and hybrid clouds. Cisco CloudVerse combines these key cloud elements – Unified Data Center, Cloud Intelligent Network, and Cloud Applications and Services – enabling businesses to realize all of the benefits of clouds: improved agility, better economics, enhanced security and a dynamic, assured experience.

According to Cisco Cloud Index, over 50 percent of computing workloads in data centers will be cloud-based by 2014, and the global cloud traffic will grow over 12 times by 2015, to 1.6 zettabytes per year. This offers a tremendous business potential and Cisco it seems is moving fast to make the most of it.

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Cisco’s Worth $21 as Margins Hold Up Despite Choppy Markets

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Thursday, December 8th, 2011 by Trefis Team

Cisco (NASDAQ:CSCO) reported strong first quarter earnings with both revenue growth and adjusted earnings per share (EPS) beating market estimates. It seems like Cisco is finally able to bring about the desired operational efficiency as a benefit of its months long overhaul to save $1 billion through layoffs and asset sales are now beginning to show up in its results. Earlier this year, Cisco witnessed its shares drop amid sluggish demand and increased competition from players like Juniper Networks (NYSE:JNPR), Alcatel-Lucent (NYSE:ALU) and Hewlett-Packard (NYSE:HPQ) among others.

We currently have a $21.21 Trefis price estimate for Cisco, about 15% above the market estimates.

Avaya Elbows into Ethernet Switch Market to Challenge Cisco

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Wednesday, December 7th, 2011 by Trefis Team

Cisco (NASDAQ:CSCO) is now set to face increased competition in the core Ethernet switch market from Avaya after consistently losing market share in the IP telephone market to Avaya in the last few quarters, much like its share loss in the Wi-Fi equipment market to Aruba. Avaya is updating its Ethernet switch portfolio with six new models offering plug-and-play capabilities for IP phones, quality of service (QoS) management, and support for both standard and enhanced power over Ethernet. Cisco currently leads Ethernet switch (Layer 2/3) market with a dominant share of 63% as of second quarter of 2011, according to research firm IDC, well ahead of competitors like Juniper Networks (NYSE:JNPR), HP (NYSE:HPQ) and Avaya. ((Avaya Goes After Cisco With New Ethernet Switches, networkcomputing.com))

We currently have a $21.20 Trefis price estimate for Cisco with Network Switches making up nearly 21% of the company value.

Cisco Gains Market Share in the Carrier Router and Switch Market

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Tuesday, December 6th, 2011 by Trefis Team

According to a recent report by market research firm Infonetics, Cisco (NASDAQ:CSCO) increased its overall carrier router and switch revenue by 3% sequentially in Q3 to $1.43 billion while competitors Alcatel-Lucent (NYSE:ALU), Huawei, Juniper (NYSE:JNPR) and ZTE saw double-digit percent declines. As a result, Cisco’s market share reached over 40% for the first time in 2011. The market, however, was down 7.1% sequentially and increased only 4.5% on a year-over-year basis.

In the IP edge segment (edge routers and carrier Ethernet switches), which makes up 79% of the carrier router and switch market, Cisco expanded its share to 36.2% in the third quarter.

We currently have a $21.20 Trefis price estimate for Cisco, about 15% above current market price.