4 February 2008
by Alex Scroxton
Those operating in the networking channel can put aside fears of a recession and concentrate on enjoying a decade of financial security because of the deployment of next generation networks (NGNs).
The positive outlook was given by Cisco CEO John Chambers, who said the rush to build IP-based NGNs meant the networking business was secure until at least 2018.
Chambers has not been alone in talking up the strength of the networking industry with most believing the sector to be so crucial to the success of business that it
can weather any downturn (MicroScope 14 January).
Other vendors are backing the line taken by Chambers. Juniper EMEA portfolio marketing manager Trevor Dearing agreed the number of network refreshes was going to increase: "The value of the network has moved away from connectivity, so people need to level up their switches."
"It’s interesting to see Cisco making significant announcements on things that are also important to Juniper. They’re reacting a lot more to what the competition is doing, which is an indication the market is about to get a lot more exciting," he added.
One reseller said vendors looking to cash in on NGNs would be forced to offer all the pieces of the product jigsaw or forge alliances: "Unless you have a complete networking portfolio the only way to be cost-effective is to partner."
In a move widely interpreted as reflecting its desire to go for a complete offering, Juniper indicated it is moving into a position where it can tap into the enterprise market with the launch of a range of Ethernet switches.
"Juniper’s partners have been unhappy they couldn’t sell a complete solution in the past," said EuroLAN consultant Keith Humphreys. "They didn’t like introducing Extreme or Cisco."
