Comments on: Juniper Going After Nortel Vendors

By: exnt2

exnt2 — Fri, 05 Dec 2008 04:32:57 +0000

looks like they are saturated and in flat or declining mode. they succeeded in taking out two major nortel products with a partnership 9 years ago. they pretty much burned the bridge with nortel. so I dont think juniper will get anything.

By: exnt2

exnt2 — Thu, 04 Dec 2008 23:32:57 +0000

By: Happily Retired Cisco Exec

Happily Retired Cisco Exec — Tue, 02 Dec 2008 19:40:21 +0000

Cisco has already been engaged in taking out Nortel's channels. There are many ways to do this. Juniper is simply following Cisco's lead. It is an obvious play against a distressed competitor with poor channel management and programs.

As the alternative Cisco, Juniper will simply incent its channels to identify and take out the remnants of Nortel's installed base of router and switch customers. At the same time, it will attempt to sign up whatever Nortel channels are left standing and incent them by having them push Juniper products into their installed Nortel customer base.

Nortel does not have the cash to incent its chanel partners and potential partners to aggressively sell Nortel, and it does not have the cash to finance distributor inventories. This is just a sign of the disaster that will be Nortel's Q4 number.

Predatory channel activities against a distressed company is one of the clear signs that Nortel's competitors view Nortel as the helpless walking dead.

By: puddintane

puddintane — Tue, 02 Dec 2008 17:28:05 +0000

The term “secular bear” rather reminds me of a biorythm:

“A biorhythm (from Greek βιορυθμός – biorhuthmos) is a hypothetical cycle in physiological, emotional, or intellectual well-being or prowess. “Bio” pertains to life and “rhythm” pertains to the flow with regular movement. Biorhythms theory has no more predictive power than chance, and has been labeled a pseudoscience by skeptics.”

By: Observer

Observer — Tue, 02 Dec 2008 12:49:26 +0000

That's right. Check out that Cisco and Juniper stock price. Equities always go thru valuation adjustments from bubble to bust. Its funny watching the Juniper VP quoted above say he somehow understands the challenging business climate/landscape as if this is your typical recession/recovery cycle. He has no clue as to how ugly it is going to get. For those in Canada on this board, it is going to get very ugly in residential and commercial real estate for you and the rest of the world. The world is about 12 months behind where the US consumer which drives the global economy is.

By: less

less — Tue, 02 Dec 2008 12:22:03 +0000

I get it. Secular bear, right?

By: broadbandbill

broadbandbill — Tue, 02 Dec 2008 05:10:54 +0000

W or L? Not clear yet…–bb

By: Bill

Bill — Tue, 02 Dec 2008 03:48:08 +0000

Avaya too.

By: broadbandbill

broadbandbill — Mon, 01 Dec 2008 23:56:18 +0000

So here’s the score card :

Domestic Winners: Cisco and Juniper;
Markets: Telecom and Enterprise (2)

Foreign Winners: Huawei, ZTE
Markets: Telecom and Wireless (2)

Losers:
Alcatel, (Lucent), Siemens (others)
Markets: Telecom, Enterprise & Wireless (3)

Any questions about too many channels/markets? ..--bb

By: broadbandbill

broadbandbill — Mon, 01 Dec 2008 23:47:23 +0000

Observer,

Not all Wall Street players are idiots. Case in point:

Juniper is a player in Telecom and Enterprise ONLY, which is where the synergies are. For info, they entered the enterprise market a decade AFTER they established dominance in the Telecom space and had a solid balance sheet. And, for further info, it was George Riedel, Nortel’s current CSO that SUCCESFFULY got Juniper into the enterprise market (during his two-year tenure at Juniper). Prior to that GR was at McKinsey. Hope that clarifies things for you…–bb