Good News for Nortel: Leading Vendor in Router/Switch Sales

| About: Nortel Networks (NT)

As much as I’ve been accused from time to time of being overly-enthusiastic about highlighting Nortel’s (NT) struggles, I’m also happy to put the spotlight on positive news.

For example, Synergy Research Group just released its Q2 survey for router/switch sales to service providers. Guess what? The leading vendor in terms of quarter-to-quarter growth is Nortel... by a country mile over Tellabs.

In explaining the strong router sales overall, Synergy said:

While the increasing demands of multimedia network traffic such as video are contributing to Router sales, Synergy believes managed services are also becoming a strong growth driver. Worldwide, businesses are turning to service providers for managed services as a cost-effective alternative to maintaining and running their own networks. Synergy believes as organizations continue to operate under challenging economic conditions, the trend to outsource network services to Service Providers will continue to increase.

For service providers to address this opportunity they will need to offer competitively priced services that provide a flexible access aggregation architecture and an efficient operation to the Enterprise. This will require Service Providers to increase their Router investment, especially at the edge of their networks.

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