Cisco Taking Service Provider Market Share vs. Juniper?
When Cisco Systems (CSCO) delivered relatively strong Q2 2012 financial results earlier today, the numbers revealed the networking giant has successfully cut costs while restoring top-line revenue and net income growth. Listen closely and you may even hear CEO John Chambers suggest Cisco is taking share from rival Juniper Networks (JNPR) in the service provider market. Here’s the chatter.
First, the basic facts. For its Q2 ended January 28, Cisco reported:
- Net sales of $11.5 billion, up 11 percent
- Net income of $2.2 billion, up 48 percent
The figures essentially beat Wall Street’s expectations. In an earnings call, Cisco CEO John Chambers focused on a range of markets — including the service provider sector, where sales grew 12 percent year over year. Without mentioning Juniper by name, Chambers drew a clear line between Cisco’s progress and Juniper’s alleged challenges.
Chambers said:
“Our performance in the service provider market this quarter is proof of the power of our integrated architectural approach, and the benefits of our intelligent network in helping our customers to transform their business and capitalize on new revenue opportunities.
This architectural approach makes us a strategic partner to our top service provider customers globally, and it’s what differentiates us from our competitors. So while others talk about the decline in service provider CapEx, we are pleased with our performance and the alignment of our portfolio with our service provider customer’s spending priorities.”
He added: “Our Q2 revenue growth and guidance for Q3 appears to be proof points in how we’ve been breaking away from many of our competitors.”
Chambers’ words are an indirect attack on Juniper, which issued a financial warning in January 2012 — though Juniper did host a successful global partner conference that month as well.
