Cisco taking share from Nortel?

Cisco and Juniper may be picking up enterprise market share from bankrupt Nortel, which just posted a Q4 loss of $2.13 billion this week. 

Market tracker Technology Business Research believes Nortel's bankruptcy is costing the company enterprise and carrier customers, who are questioning Nortel's ability to meet long-term obligations and fulfill contracts while it deals with its Chapter 11 restructuring -- even though Nortel says it is winning new business during the process. 

Nortel's biggest Q4 revenue decline came in Enterprise Solutions, as business customers cut back on purchasing and directed their spending to other, more stable, competitors, TBR says. Enterprise Solutions saw revenue decline 30% year-to-year to $535 million. TBR believes the results reflect not only the economic downturn, but that enterprises are directing spending to competitors such as Cisco and Juniper, which are taking advantage of Nortel's uncertain future to gain market share. 

TBR believes that Nortel's decline will grow worse in 2009.  The firm believes Nortel will attempt to hold onto Enterprise Solutions business and possibly its Metro Ethernet Networks business, but will ultimately find itself pressured to sell its carrier business. 

It already sold off its Web switching business for a pittance of what it paid for it.

More from Cisco Subnet:

Brocade posts $26 million quarterly loss, record revenuesNew CCIE count: Beginning roots of a new tech boom?OSPF Puzzle VI: Interpreting show ip ospf Largest coordinated ATM Rip-off ever nets $9+ million in 30 minutes

IT in 2109: Quantum Entanglement, Mini Black Holes and Nanotech: Part 1

Vyatta beats out Cisco, Juniper for New Mexico win

Details of "Project California" revealed

Go to Cisco Subnet for more Cisco news, blogs, discussion forums, security alerts, training/book giveaways, and more. Follow Cisco Subnet on Twitter. 

Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.
Related:
Now read: Getting grounded in IoT