As it helps service providers adapt to the changing IP Communications landscape, in that is in a constant state of flux, Cisco has been announcing several new customer wins of late.  

 

SAVVIS (News - Alert), for instance, is using Cisco’s CRS-1 (Carrier Routing System) to power its new Application Transport Network. And XO Communications is deploying the CRS-1 to enhance its nationwide IP/MPLS network.  Both are looking to keep pace with the evolving applications and services being introduces into their network environments

 

Now, however, Cisco has announced its most significant customer win — AT&T (News - Alert) has selected the CRS-1 as the core for its IP/MPLS backbone, over which it delivers voice, video, data, and mobility services to its worldwide.

           

Cisco’s CRS-1 brings unprecedented flexibility and reliability to carrier networks, enabling operators to ensure availability and       scalability as they introduce new next generation services and grow their customer bases.

 

“The Cisco CRS-1 meets our and our customers’ needs in this regard, and will help us continue to lead the industry in delivery of residential and business services,” said Kaveh Hushyar, senior vice president, Network Planning & Engineering at AT&T.

 

The CRS-1, in fact, is designed to ensure continuous system operation and extend system lifecycles. It also is well-suited for today’s evolving IP Communications arena, enabling always-on system availability and capacity up to 92 Tb/s, creating a network infrastructure that is operational today while leaving room for future growth.

 

Furthermore, while winning the contract with the largest American telco is a major milestone in terms of Cisco customer wins, it also is a major accomplishment in terms of the competitive landscape.  The deal underscores the difficulties Alcatel-Lucent (News - Alert) has faced since the merger of French Alcatel and U.S.-based Lucent last year.

 

In fact, its failure to sign AT&T cuts deep for Alcatel-Lucent, which had been chosen by then SBC as its primary vendor. At the time, it solidified Alcatel-Lucent as a dominant force in the networking equipment space, but since then, the company has struggled, as it has seen many new offerings fail to trigger market demand. Earlier this year, the company posted its third quarterly loss in a row.

 

“This is one more nail in the coffin,” Telecom Pragmatics analyst Sam Greenholtz. “But I’m not sure it’s the final nail.”

 

The latest move by Alcatel-Lucent CEO Pat Russo was to lay off another 4,000 employees, but it will take more than that to right this ship and revive the firm’s core router business.

 

Still, the company’s size and history are not easily brushed aside, and Cisco will surely have to be prepared for a difficult battle as it looks to maintain its current edge.