NETWORK WORLD NEWSLETTER: JIM DUFFY WITH VIEW FROM THE EDGE 11/04/04 Today's focus: Enterprising efforts
Dear [EMAIL PROTECTED], In this issue: * Telecom vendors look to tap a packet market twice as big as ��their own * Links related to View from The Edge * Featured reader resource _______________________________________________________________ This newsletter is sponsored by SBC Gimme Shelter! Converged Services Spell Relief For Beleaguered Network Managers Switched IP networks are rapidly becoming the corporate communications architecture of choice. By converging voice, data and video onto IP telephony platforms and Virtual Private Networks, enterprises can supply bandwidth when and where end users need it, while significantly lowering administrative and equipment costs. Click here to download this Whitepaper now http://www.fattail.com/redir/redirect.asp?CID=85993 _______________________________________________________________ WHAT ARE YOU DOING TO GET AHEAD? An IT recruiter outlines the actions you should take to advance your career. Learn how you can gather the enduring respect of colleagues, clients and business associates without coming off as pompous or self-serving. Click here to find out what you need to do to get ahead: http://www.fattail.com/redir/redirect.asp?CID=86117 _______________________________________________________________ Today's focus: Enterprising efforts By Jim Duffy The grass is always greener... Maybe that's why traditional telecom vendors are targeting the enterprise for sales growth. As network requirements in the enterprise begin to match those in the service provider network in terms of resiliency and security, telecom vendors find that their products sell just as well into corporations. The worldwide market for packet-based enterprise communications equipment is also twice as big as that for service provider equipment, according to Synergy Research. In the first half of 2004, the worldwide market for packet-based communications systems for enterprises was more than $11 billion; the same market for service providers was $5.4 billion, according to the firm. That's why Nortel is hanging onto its enterprise business, and why Juniper Networks and Lucent are expected to expand theirs. Juniper made a forceful entry into the enterprise market with February's acquisition of security vendor NetScreen. Juniper then followed that up with the launch of the J-series access routers in June. And many expect Juniper to acquire a presence in Layer 3 Ethernet switching -- perhaps via Extreme Networks. Juniper's not expected to stop there, however. Many expect the vendor next year to also develop or acquire Layer 4-7 Ethernet switching and IP PBX capabilities, and perhaps wireless LAN and storage networking expertise down the road. "We see significant opportunity in expanding the corporate networking and security side of our business," Juniper CEO Scott Kriens said during a third-quarter earnings conference call two weeks ago. "The opportunity is growing." The company's current enterprise VoIP strategy is to partner with IP PBX vendors such as Avaya, with which it is testing and demonstrating interoperability between the J-series routers, security software and packet PBXs. But partnering may be a precursor to insertion. There's serious growth opportunity in the enterprise for Juniper partner Lucent, as well. Sales of Lucent's network management software, Ethernet/SONET transport systems, VPN firewalls and Accelerate VoIP products grew 30% to 40% over the past year, and are expected to exceed that this year, according to Mark Wilson, Lucent's enterprise sales vice president. And this is five years after Lucent jettisoned it enterprise business, spinning it out and into the independent company Avaya. Analysts expect Lucent to tap Juniper to further its enterprise ambitions by reselling the J-series routers and NetScreen VPN systems. Wilson says there is currently no arrangement with Juniper to sell enterprise products. But Kriens, in the earnings call, says all of Juniper's partners - which include Siemens and Ericsson, in addition to Lucent - are "in some stage of evaluation" of the low-end of the Juniper's router product line or its security products. So perhaps Juniper and Lucent understood why rival Nortel retained its enterprise operations after many expected the company to disengage it this summer to make up a profit shortfall. Nortel CEO Bill Owens considered that but held on to it because the enterprise market is driving convergence -- and service provider business. Enterprise accounted for 22% of Nortel's preliminary estimate of $2.55 billion in revenue for the second quarter, according to the company. That's better than two of Nortel's traditional businesses -- wireline at 17% and optical at 10%. RELATED EDITORIAL LINKS Industry awaits Juniper's next enterprise move Network World, 06/07/04 http://www.nwfusion.com/news/2004/0607juniper.html Lucent looks to tap enterprises - again Network World, 04/28/03 http://www.nwfusion.com/news/2003/0428lucent.html Nortel chief discusses why enterprise stays Network World Fusion, 08/20/04 http://www.nwfusion.com/edge/news/2004/0820ntqa.html _______________________________________________________________ To contact: Jim Duffy Jim Duffy is managing editor of Network World's service provider equipment coverage <http://www.nwfusion.com/edge/>. He has 18 years of high-tech reporting experience, including over 12 years at Network World. Previously, he was senior editor at Computer Systems News and associate editor/reporter at Electronic News and MIS Week. He can be reached at <mailto:[EMAIL PROTECTED]>. _______________________________________________________________ This newsletter is sponsored by SBC Gimme Shelter! Converged Services Spell Relief For Beleaguered Network Managers Switched IP networks are rapidly becoming the corporate communications architecture of choice. By converging voice, data and video onto IP telephony platforms and Virtual Private Networks, enterprises can supply bandwidth when and where end users need it, while significantly lowering administrative and equipment costs. Click here to download this Whitepaper now http://www.fattail.com/redir/redirect.asp?CID=85992 _______________________________________________________________ ARCHIVE LINKS Archive of the View from the Edge columns: http://www.nwfusion.com/edge/columnists/index.html _______________________________________________________________ FEATURED READER RESOURCE NEW! Website dedicated to Networking for Small Business now available The editors of NW Fusion and PC World have combined all their expert advice, authority, and know-how into a powerful new tool for small businesses, the new Networking for Small Business website. Get news, how-to's, product reviews, and expert advice specifically tailored to your small business needs. Find help with Security, Broadband, Networking, Hardware, Software, and Wireless & Mobile technology at: <http://www.networkingsmallbusiness.com/> _______________________________________________________________ May We Send You a Free Print Subscription? You've got the technology snapshot of your choice delivered at your fingertips each day. Now, extend your knowledge by receiving 51 FREE issues to our print publication. 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