Networking gear maker Avaya will become an even more serious threat to Cisco and Juniper Networks come April with reports of going public. That’s the timeframe two different anonymous insiders provided, according to a Bloomberg report. Avaya has been wanting to go public since the original June filing was turned in, but according to the same two people that disclosed the revitalized plans, the market wasn’t ripe.
Cisco Systems Inc., the top manufacturer of networking equipment and a competitor to Avaya, slumped 11 percent last year, while rival Juniper Networks Inc. dropped 45 percent. The weakness reflected concerns that customers would delay upgrades amid economic turmoil. The outlook brightened in recent weeks after quarterly results from Cisco exceeded profit and sales estimates and analysts predicted that AT&T Inc., the largest U.S. telephone company, would step up capital spending.
Avaya is still a long way behind its two biggest competitors, but it has been making definite progress in at least one area. It’s the second largest vendor of enterprise telecommunications solutions, following Cisco. The latter has maintained parallel ventures in the consumer space, the umi and Flip, but shut them down a few months ago.
That was the result of an internal overhaul to the networking giant’s internal decision-making and fragmented businesses, which has gone on for almost a year and is starting pay off. The process of consolidation with a refocus on the enterprise market is similar to processes others in the tech sector are undergoing.
Cisco beat Wall Street’s average expectation with its Q2 earnings announced earlier this month. The company reported 43 cents per share on revenue of $11.23 billion, higher than the 37 cents analysts forecasted.
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