NPTN - Needham reviews the names stealing Cisco's share and high-upside optical networkers

Recapping Needham's Virtual Security, Networking, and Communications Conference, analyst Alex Henderson notes that companies on the network side look to be catching up with Cisco Systems (CSCO), while optical names are mostly standing out because of relatively low valuations against solid results in the trough of the cycle. Networking presentations at the confab sounded a common note, Henderson says: "We are taking share from Cisco," and winning with software-driven approaches and AI-driven, cloud-based tech. "Cisco looks like it has fallen further behind than most realize, despite all its talk about cloud and software," he says. "Only 25% of Cisco's security business is actually cloud-native, for instance." It's "hemorrhaging" share after five quarters of down product sales and poor execution, realigning via a 7% workforce cut, and "its new chips are late and under-powered" - allowing three companies to solidly outperform with AI-driven technology, he writes: Arista Networks (ANET), Extreme Networks

For further details see:

Needham reviews the names stealing Cisco's share, and high-upside optical networkers