Cisco Gets Closer to Clearwire, Executing on Its Core Strengths

| May 13, 2009 | Wireless Infrastructure | Flash Analysis

| Analyst: Peter Jarich

Current Perspective: Positive
Vendor Importance: High
Market Impact: Low

Event Summary

May 13, 2009 -- Clearwire and Cisco announced a partnership to support Clearwire’s mobile WiMAX services in the U.S. In particular, Clearwire has selected Cisco as its national IP NGN infrastructure provider, including the provision of 7600 Series routers, ONS 15310 platforms, Cisco ASA Firewalls, and Cisco’s SAMI-based Home Agent. At the same time, Cisco announced plans to build mobile WiMAX devices for Clearwire’s consumer, SOHO, and SMB customers.

Analytical Summary

• Current Perspective: Positive on Cisco’s mobile core and WiMAX device win at Clearwire, because supporting the would-be 4G service provider with routers, firewalls, home agents, and optical gear helps to showcase Cisco’s capabilities and how it can support wireless network builds. Plans to build Clearwire mobile WiMAX devices help to showcase the company’s consumer electronics capabilities – and its determination (finally) to push them into wireless operators. Of course, combining device and network assets in a single win announcement suggests a quid pro quo with little planned extension to other mobile WiMAX operators, and a network deal absent ASN or base station assets does little to argue for Cisco’s WiMAX-specific expertise.

• Vendor Importance: High to Cisco, because the company still needs to assert its wireless credibility on a regular basis. Yes, Cisco can claim a broad set of wireless products. Yes, Cisco can claim a broad set of wireless customers. Broadly, however, the vendor is still not seen as a wireless vendor. Supporting Clearwire with routing, transport, firewall, and home agent support highlights its wireless assets, with plans to build mobile WiMAX devices for Clearwire signaling its commitment to the space.

• Market Impact: Low on the wireless infrastructure market, because Cisco’s win at Clearwire does little to tell the market anything it does not already know or significantly move Cisco into new spaces. Again, the announcement – including a reference to its Visual Networking Index – reaffirms Cisco’s focus on wireless. The company’s success with routing and its focus on the mobile core, however, are not news to anyone… and the relative lack of core routing expertise from Clearwire’s RAN vendors makes the win even less surprising.

CLIENTS ONLY

| Client access - Full report in Wireless Infrastructure | More information

Top