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Cisco's Newfound IP Routing Success Won't Outshine Alcatel-Lucent
May 20, 2015 1:20 PM ET | 15 comments | About: Cisco Systems, Inc. (CSCO), ALU, Includes: NOK
Disclosure: The author is long NOK. (More...)
CSCO has once more found growth in an IP business that accounts for nearly half of its revenue and the majority of its operating profits.
This success can be attributed to two main routing products, both of which handle large and complex loads of data.
ALU's competing router is still superior, and once combined with NOK, will continue to gain market share in IP routing regardless of CSCO's success.
Over the last few years, Alcatel-Lucent (NYSE:ALU) has completely dominated Cisco (NASDAQ:CSCO) in the IP routing space. While Cisco's IP routing business is larger than Alcatel-Lucent's competing business, Alcatel has averaged a double-digit growth rate the last 10 years and has consistently stolen market share from Cisco; Alcatel now owns 21% of the market.
MOBILE OPTIMIZED CDN
The world is going mobile. And it’s bringing video along for the ride.Mobile data is changing the way we work, play and interact. Video is at the heart of this transformation. Everywhere you look, people are watching video on PCs, smartphones and tablets. They’re watching on the train, in the waiting room and on the street. People want video to follow them wherever they go.
It’s no surprise that mobile data traffic is doubling every year. Web browsing, device firmware updates and mobile gaming create data traffic. But video plays the leading role in driving data traffic growth.
VELOCIX...an Alcatel-Lucent Company
Struggling telecoms supplier Alcatel-Lucent has beefed up its Optism mobile advertising platform by integrating geolocation technology ....................
As a new business model, the Alcatel-Lucent Optism Mobile Advertising Solution goes beyond simply providing technical capabilities to offer go-to-market ...
Telefónica heralds the start of a new growth cycle. 18 minutes ago.
Spanish telco giant Telefónica heralded Q1 2015 as the start of a new growth cycle for the company, having increased its net income by 162%.
Alcatel-Lucent (NYSE:ALU) has signed a letter of intent with contract manufacturer Flextronics (NASDAQ:FLEX) to transfer an optical transport hardware manufacturing plant located in Trieste, Italy. Terms are undisclosed.
Alcatel-Lucent has flagged some improvements in profitability for the January-to-March quarter ... (See Alcatel-Lucent Fires NG-PON2 Starting Gun.) ...
Reality is they need each other re 5G , IoT (IoE) Smart Grid , Cloud and APIs for same.....etc......there is little overlap....noted that ALU has a large stash of 5G patents.........
DE-CIX Munich is owned and operated by DE-CIX Management GmbH based in Frankfurt. DE-CIX already operates the world’s leading Internet exchange in Frankfurt plus regional IXs in Hamburg and Munich as well as UAE-IX in Dubai and DE-CIX New York. The company serves over 600 Internet providers from 60+ countries. This includes all leading players in the industry including Google, Yahoo, Sprint, AT&T, Level3 and many others.
U-verse with AT&T GigaPower
AT&T (T) continues to expand its U-verse with AT&T GigaPower service across select areas of the US. The service with Internet speeds up to a maximum of 1Gbps (gigabits per second) is now available in ten select markets. The telecom company initiated the service in select areas of the Chicago metro market on April 20, 2015.
According to a company press release on that date, “U-verse with AT&T GigaPower is now available to consumers and small businesses across parts of 10 total markets – Atlanta, Austin, Chicago, Cupertino, Dallas, Fort Worth, Houston, Kansas City, Raleigh-Durham and Winston-Salem.”
2 Stock Picks - Analyst Blog
Juniper Networks, Inc. JNPR is a leading provider of networking solutions and communication devices. The company is set to capitalize on the growing demand for data center virtualization and cloud computing. Juniper Networks reported encouraging results last week and provided an optimistic outlook, primarily due to rising cloud services related demand.
Juniper Networks holds a Zacks Rank #1 (Strong Buy) and has expected earnings growth of 16.4% for the current year. The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 20.88.
Alcatel-Lucent ALU is a leading global provider of IP and Cloud networking, ultra-broadband fixed and mobile access. Earlier this month, it launched Rapport, a cloud-based communications platform, which is targeted for deployment on the private clouds of large corporations.
Apart from a Zacks Rank #2 (Buy), Alcatel-Lucent has expected earnings growth of 40.2% for the current year and has a P/E (F1) of 22.59.
Prospects for the cloud services market are expected to improve considerably in the days ahead. Related equipment and service providers are expected to significantly benefit from this trend. This is why these stocks would make prudent additions to your portfolio.
As we enter in an upward cycle of submarine cables constructions, this new project highlights the continued need for higher capacity and connectivity that is critical for broadband expansion.”
April 24, 2015
Alcatel continues to grow its share in the world-wide service provider market. There is solid demand for core router in the commercial market and the company bagged 36 new orders for this in 2014 and will continue to win many more of such orders in the days ahead. Moving to its SDN (software defined network) division, Nuage is doing good business with a number of new customers over the years.
The company is doing all it can to keep the orders flowing in. For example, the recently launched virtual portfolio is already a big hit with five wins and more than 50 trials for the VSR, specifically for the route reflector and routing stimulator product families. Such new additions will position Alcatel to solidify its sales.
In the wireless segment also, the company did well and bagged 11 new LTE wins during the quarter across EMEA and North America, while small sales continued to add to its revenue. Currently it has 76 customers in small sales and 133 contracts across the residential enterprise at mid wholesale portfolio. While there are headwinds in this segment, the company is working hard to bring it back to profitability by the end of 2015 and its current results prove the same.
Apart from these, Alcatel had strong numbers in its other businesses as well and seems to be well on track to achieve year over year growth in the coming years. Its operating cash flow was positive for the entire year, which is quite encouraging and indicates the strength in its fundamentals.
Going forward, the growth would continue as the management cites of a strong build up in its order book with various new contracts during the quarter. Although careful assessment of the financials shows a decline between 2012 and 2014, there has been a significant change in the composition of its revenue portfolio since then.
The company is now counting on its IP, cloud and ultra-broadband technologies to reallocate its resources and accelerate the development program.
Bell Labs Continues to Change Our World
10 Gbps over DSL and 5G wireless are two technologies reshaping communications as we know it.
April 24, 2015
Last week I had the pleasure of speaking with Marcus Weldon, president of Bell Labs and CTO of Alcatel-Lucent, about challenges in the terabit optical arena. As always, getting a glimpse into what the folks at the Labs are working on is more than fascinating.
I've always been a fan of Bell Labs, and thinking back to a facility tour I once did reminds me incredible opportunity. Just when you begin to think that something we encounter in technology has reached its limit, the good folks at Bell Labs break barriers.
Marcus Weldon, Bell Labs
In our conversation, Marcus talked about a couple of key projects that will change our world.
The first is XG-Fast, which provides 10 gigabits per second over DSL using vectoring,.............
5G, or fifth-generation mobile communications, will allow millions of subscriber connections over a cell, compared to the 300 to 1,000 subscriber connections supported on existing cells. 5G requires less synchronization than LTE wireless communications, and places less strain on user device batteries. Marcus suggested imagining a wire over the air with energy beams focused toward the location of each user device. He said, "Use what we have and efficiently" -- which is reminiscent of the sentiment I shared a few years back from Martin Cooper, inventor of the mobile phone. "We need better use of spectrum, not getting more spectrum," Cooper has said, as I reported in the No Jitter post, "Indoor Mobility?"
Breaking the terabit optical barrier, running DSL faster over copper, and delivering more connections over the air may seem like trivial accomplishments to some, but they are not. Speaking to Marcus was like reading James Martin's The Wired Society and conjuring up what once was only imaginable is now practical.