11/5/2007 -- Don't look now, but Cisco Systems Inc. is starting to look like a formidable competitor in the metro edge and metro DWDM optical networking segments, thanks largely to its successful line of MSPP and MSTP products.

Even though Cisco still isn't a technology leader in all optical market categories, analysts give its optical vision high marks.

Christina Dietrich, a senior analyst for optical infrastructure with consultancy Current Analysis, pointed to Cisco's ONS 15310 as a representative case in point. That product incorporates C/DWDM capabilities that help make it suitable for metro and edge applications.

At the same time, however, the ONS 15600 preserves interoperability with Cisco's ONS 15310-CL, ONS 15454 and ONS 15600 devices. As a result, Dietrich said, Cisco can credibly position it as part of a complete metro solution for multi-service transport over SONET/SDH networks.

"Cisco also bolstered the capabilities of its successful ONS 15454 platform by improving the platform's Ethernet aggregation, service provisioning and ROADM capabilities," Dietrich said.

Cisco recently modified its optical marketing strategy, too, and this shift couldn't have happened at a better time, according to Dietrich. "Cisco's shift in marketing focus from basic equipment capabilities to crucial application enablers that facilitate advanced services delivery argues that the vendor's marketing messages are evolving in response to service providers' forays into advanced video and data services," she said.

On the other hand, Dietrich pointed out, Cisco is a far more successful data networking than optical networking competitor. As a result, the company finds itself in the unusual position of having to strive for mindshare -- in some cases, against companies that are as large (or nearly as large) as Cisco itself.

"[A]lthough Cisco does maintain an SDH product line, there is no denying that it is a runner-up to vendors such as Alcatel-Lucent, Huawei, Ericsson -- via Marconi -- and Nokia Siemens Networks, all of whom have stronger optical traction in SDH markets," Dietrich said. "On the product level, despite a promising datasheet, Cisco has yet to demonstrate significant traction for the new ONS 15310 platform, suggesting that it may be relying heavily on mobile backhaul demand -- a market opportunity targeted by nearly every optical and data networking vendor on the planet -- to fuel sales of the platform."

There's also Cisco's failure to follow up wins for its 15454 products with wins for its ONS 15600 Multi-Service Switching Platform. According to Dietrich, this suggests that "Cisco's traction is based on a few solid products, rather than a comprehensive metro optical solution."

Neither can Cisco be called a "significant" player in the long-haul segment, she added.

"Cisco has not announced a replacement product for the ONS 15800 which it end-of-lifed after failing to build strong credibility," Dietrich said. "[W]hile Cisco's IPoDWDM solution creates links between Cisco's portfolio and other offers, the architecture relies on another optical vendor for the long-haul portion of the network, detracting from Cisco's ability to offer comprehensive single-vendor optical solution."

All the same, Dietrich concluded, there's a lot to like in Cisco's optical market vision and execution. It continues to demonstrate momentum for its ONS 15454 platform, for example, while it has also gained demonstrable market leadership in metro multi-service platforms, building a strong metro case on top of its ONS 15454 platform, which -- at this point -- claims over 75,000 nodes and over 6,000 ROADMs installed.

Elsewhere, Dietrich highlighted Cisco's IP NGN strategy as another positive. "By positioning its optical products as key components of Cisco's solutions for migrating to IP, [Cisco] is increasing solution sales of its optical solutions combined with [its] broader range of switches, routers, gateways and softswitches," she said. "This IP NGN solutions-based approach to sales reinforces Cisco's reputation as an IP expert, which allows the vendor to leverage its existing strengths toward securing emerging market opportunities." --Stephen Swoyer