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No. of Recommendations: 9
After a lot of study of Redback, Sycamore, ONIS and the other NGN suspects, I'm having a lot of trouble understanding one major point.

This point is the following. Somewhere in the manual, they explain that you need discontinuity on the side of the vendor, but continuity on the side of the customer. Without discontinuity on the side of the new vendor, the existing vendors simply co-opt the innovation.

I can see where JNPRs discontinuous innovation is: it's JUNOS which allows their routers to work much better than CSCOs. CSCOs need to keep using IOS and that is likely to continue to hurt their performance compared to JNPR. And then the rest of the argument follows: the switching costs are high, and so once they're in and their value chain has formed, they become the (local) gorilla.

This I see.

What I can't see is where the discontinuity is for RBAK, SCMR and ONIS. Why is it *not* possible for CSCO and NT to offer equally compelling products--if not now, then in the future?

I would argue that without this discontinuity, we are looking at a royalty game, which would make RBAK, SCMR and ONIS much more risky investments given that they're going up against the monster gorilla itself. In fact, I would argue that without this, their current market caps are way too high because the market is clearly projecting a very long CAP.

Can anyone comment? I would really like to buy SCMR, RBAK and ONIS, but still can't understand these issues clearly enough to do so. I have bought JNPR because that one I get.
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