Cisco Strengthens Domination Over Rival Equipment Makers

In motorbike lingo, “riding proud” means to be poised confidently and purposefully on your cycle.

Cisco Systems (CSCO) is riding proud – according to ChangeWave’s latest survey on Telco equipment spending – widening its lead in the telecom carrier, optical, and wireless equipment spaces.

To top it off, for the first time in a year, spending growth on Telco equipment is moving in a positive direction.

Slight Uptick in Growth

ChangeWave’s October 4-10, 2007 survey of 431 respondents involved with Telco equipment purchasing in their organization, shows a slight uptick in corporate spending growth for telecom carrier (up 4-pts) and wireless equipment (up 1-pt).

The picture for optical gear (-3 pts) is less dynamic, however, with the spending growth rate declining for the third consecutive survey.

Cisco Strengthens Its Market Domination

Here’s why the numbers are looking so good for Cisco within each of the big 3 Telco markets:

[A] Telecom Carrier Equipment

A full two-thirds (66%) of telecom carrier respondents say their company has bought carrier equipment from Cisco over the past six months, a substantial 6-pt increase since April. Nortel (NT) 28%, up 5-pts; Motorola (MOT) 18%, up 6-pts; and Ciena (CIEN)11%, up 6-pts; also show impressive movement in this space.

Looking ahead, Cisco (53%; up 1-pt) continues to lead in terms of future buying plans, even as Nortel (24%; up 6-pts), Motorola (18%; up 7-pts) and Ciena (9%; up 5-pts) again demonstrate momentum.

[B] Optical Equipment

In terms of current share, the Cisco Kid is way out front in the optical networking market (58%; +10), with strong momentum (51%; up 6-pts) going forward.

Optical Networking Vendors – Past 6 Months

[C] Wireless Equipment

In yet further evidence that Cisco’s riding proud, the company also holds a commanding lead as the top vendor for wireless equipment purchases both for the past 6 months (58%; up 1-pt) and going forward (49%; up 1-pt). In addition, Nokia Siemens (13%; up 3-pts) and Nortel (13%; up 2-pts) show positive visibility going forward.

The ChangeWave survey also looked at corporate network spending to handle the burgeoning demand for Video over Internet Protocol [IP]. Note that 42% of respondents say video over IP has caused an increase in their company’s spending to improve capacity.

Once again, it’s Cisco (56%; up 4-pts) that dominates the space and benefits most from this increased spending – and it’s the fiber-optics upgrade that has almost all of the momentum in terms of video over IP solutions.

So whether its telecom carrier, optical, wireless networking or video over IP equipment, our current survey results clearly show Cisco brimming with confidence and riding proud as it moves way out front of its competition.

At the moment, it appears no one is capable of slowing Cisco down.

Stay tuned.

Jim Woods co-wrote this article.

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This article summarizes the results of a recent ChangeWave Alliance survey. The Alliance is a research network of 13,000 business, technology and medical professionals who spend their everyday lives working on the front line of technological change. For more info on the ChangeWave Alliance, or if you are interested in joining, please click here.

Comments

[User 121040]

Glad to read it......glad to hear it...............just recently bought and still holding..............d... horrific day today! Go csco!