Cisco's lack of any new edge routers is hurting the company as it competes with Juniper in the service 
provider space, according to this story in Investor's Business Daily. The story reports that Cisco revealed slower growth in its router business, which grew 8% year-over-year in Cisco's Q4, down from 14% growth in Q3. "That growth far lagged recent results of No. 2 networking gear maker Juniper Networks. (JNPR) For its quarter ended June 30, Juniper reported a 43% jump for its unit that mostly sells routers," reports IBD.
The story cites analysts as saying the problem stems from Cisco selling to enterprise customers who are more likely to hold off spending during an economic downturn, compared to service providers - Juniper's bread-and-butter market - that have to bling up their networks as they compete for the same few customers.
The story also quotes Cisco CEO John Chambers as acknowleding Juniper's successes in a conference call with analysts. "We do have to make it a little bit tougher for them in a couple of the . . . accounts, and we understand where those are, and we will do a little bit better job competing in those," Chambers said.
IDB notes that Cisco fending off competition in the edge market against Juniper, Huawei and Alcatel-Lucent, and that Juniper's MX family, which was first introduced in late 2006, is a hit. IBD quotes Eve Griliches, an IDC analyst as saying: "I think they're overdue for products in this (edge) area ... Juniper has continued to deliver new products."
Even if Cisco is working on a new edge router, such products have a long development cycle.
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