Nemertes Impact Analysis:
The winning (NASDAQ:CIEN) for the metro Ethernet assets of the former Nortel Networks marks positive momentum for carrier Ethernet services in the US and abroad. Ciena increased its bid by roughly 50% to beat out competitor Nokia Siemens (NYSE: NOK) providing Ciena with additional strength in a critical area of service provider infrastructure. Enterprise adoption of carrier Ethernet services , with 75% of enterprises saying they use it (versus 52% in 2008). With this acquisition, Ciena is quietly building up significant strength in the carrier Ethernet area—and increasing the competitive threat on players such as Alcatel-Lucent (NYSE: ALU), Juniper (NYSE: JNPR) and Cisco (NASDAQ: CSCO).
Impacts:
Enterprises: Consider carrier Ethernet, particularly as a way to interconnect high-volume sites such as data and contact centers.
Vendors: Now is the time to ratchet up support for carrier Ethernet in products and services.
Investors: Keep an eye on this space. Action will continue to heat up globally.
Johna Till Johnson, President & Sr. Founding Partner
Sign Up To Receive Nemertes Impact Analysis By E-mail [1]
Follow Nemertes Research on Twitter [2]
Links:
[1] http://www.nemertes.com/research_notes_0
[2] http://twitter.com/nemertes