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Thursday, Mar 21
More on FBR's downgrades of Cisco (CSCO -3.5%) and Juniper (JNPR -3.3%): the firm sees the...
More on FBR's downgrades of Cisco (CSCO -3.5%) and Juniper (JNPR -3.3%): the firm sees the adoption of software-defined networking (SDN) leading to a 40% reduction in switch/router ports deployed by service providers/large enterprises over the next 18-36 months. Though SDN can improve network efficiency, that forecast is more aggressive than most. Also, like others, FBR sees SDN adoption driving sales of commodity, low-margin switches at the expense of Cisco/Juniper's proprietary gear. Cisco is trying to respond to the threat with an SDN platform that requires plenty of software licenses. (Juniper's strategy)