Neither competitor is making switching share gains in the US, exec asserts
Cisco says it is effectively fending off HP and Juniper as it grapples with a significant product transition in Ethernet switching. The transition, in which customers are opting for new lower margin, higher performing Catalyst and Nexus switches over older ones, are impacting Cisco's profits and revenue share, but not necessarily its port share, says Rob Soderbery, senior vice president and general manager of Cisco's Unified Access business unit.
Soderbery was interviewed this week by Oppenheimer & Co. analyst Ittai Kidron on Cisco's fixed switching business, which includes the Catalyst 2000, 3000 and, to some degree, the modular 4000 series systems for network access applications. HP competes with Cisco in the "good enough" switching category - low-priced, high-volume, feature-limited devices - while Juniper is Cisco's chief rival in "premium" switching. HP has made some inroads against Cisco's 70%+ market share internationally, but neither HP nor Juniper has made much progress against Cisco in the US, Soderbery claims.