11/22/2004 -- Thanks to Cisco Systems Inc.’s much improved optical networking line, the networking giant now has a better overall convergence story to tell.

Last week, Cisco fleshed out its multiservice optical networking product line with new and enhanced offerings for the edge, metro and core networks.

The improvements help Cisco to gain ground against competitors like Lucent Technologies, Fujitsu and CIENA. “This … increases Cisco’s competitive position by giving it a stronger convergence story, more competitive pricing, and better support for new service opportunities in which service providers have interest,” writes Dave Dunphy, a principal analyst for optical infrastructure with consultancy Current Analysis Inc. “Still, Cisco is just catching up to the market on data over SONET/SDH support and addressing former competitiveness weaknesses in the 15454 and 15600.”

The upgrades Cisco announced for its SONET and SDH multi-service optical network solutions are tailored for the requirements of carrier-class customers, in particular, Dunphy maintains.

“Cisco has built a viable multi-service solution better addressing carrier requirements for private line and GbE services in both SONET and SDH markets, catching up on providing a full complement of data over SONET/SDH technologies,” he indicates. “Cisco improves the competitiveness of the 15600 and ONS 15454 with greater interface density, protocol support on the 15454, and stronger ring termination and interface support on the 15600. The 15310-CL gives Cisco a lower entry-point price for SME and MDU customer-located equipment applications, but it offers a bit less than ‘5 nines’ availability.”

What’s more, the enhancements bolster Cisco’s lagging data capabilities and build a stronger story for convergence, Dunphy writes.

“With a lot of hard work, Cisco has dug its way out of lagging behind on data, and the company comes out of it with a more viable solution to complement its large ONS 15454 installed base,” he says “Cisco now has a significantly better convergence story and cost model with which to try and defend its installed base for the 15454 and extend strengths with that platform into greater sales of its entire multi-service optical product line.”

The upshot, Dunphy argues, is that Cisco has given many of its existing customers several compelling reasons to stay in the family. “Cisco now has a more cost-effective MSSP, and as a result has increased the opportunity to sell the 15600 and 15454 together as a solution,” he says. “In particular, Cisco will strengthen its competitiveness in accounts where it is already an incumbent with the 15454, though its competitiveness will increase elsewhere in ANSI markets as well. Still, with the selection of MSPPs by the RBOCs already having taken place, Cisco’s biggest opportunities for now will be in its installed base.” -Stephen Swoyer