Siemens sees co-operation as way to beat Cisco

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Siemens sees co-operation as way to beat Cisco

Siemens has no regrets about its decision to sell edge router manufacturer Unisphere Networks to Juniper Networks, even if some critics interpreted the move as a retreat from a router market dominated by Cisco Systems.

"We didn't step out of the market when we sold Unisphere to Juniper," said Thomas Ganswindt, a Siemens board member responsible for the group's Information and Communication Networks division. "We just changed the model."

Unisphere was created by Siemens in 1999 through its acquisitions and integration of Argon Networks, Castle Networks, and several units of Siemens Information and Communication Networks.

Juniper later bought Unisphere to bolster its portfolio of edge routers and increase its overall market share in the switch and router markets.

Now Siemens has a reseller agreement with Juniper to market its edge and core router products to carriers and enterprises, Ganswindt said.

"We are Juniper's largest revenue generator, and we remain the company's largest shareholder with our 10% stake."

Siemens also has a research and development partnership with Juniper.

Ganswindt claimed he was unconcerned about Ericsson collaborating with Juniper in developing new products and rumours that Lucent Technologies may also forge a partnership with the router maker.

 "We need stronger competition to Cisco," he said. "We need to see more manufacturers co-operate with Juniper to make Juniper a stronger competitor. Competition is good for prices and competition."  


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