Barclays on Technology: Bus Tour, Conference, Survey: Solid Networking, Healthy Handset Demand

Barclays on Technology: Bus Tour, Conference, Survey: Solid Networking, Healthy Handset Demand

Barclays analyst says, "Ahead of our Silicon Valley Bus Tour and Global Technology Conference next week, we preview likely themes across the communications equipment community. In conjunction, we introduce the results of our first Networking Manager survey, (a survey of 50 U.S. network managers), which also provides insight into the highlighted themes."

"Mobility and data center are top two networking drivers; WLAN and WAN
optimization rank highest in product spending priority. Cisco (Nasdaq: CSCO) remains a strong leader in WLAN, although we think Aruba (Nasdaq: ARUN) is steadily gaining share. Riverbed (Nasdaq: RVBD) unsurprisingly
emerged as the preferred play in WAN optimization. Lower prioritization for IP telephony and SIP trunking, but managed services is a strong driver: The survey shows ShoreTel (Nasdaq: SHOR) is a clear, albeit distant, number three player in IP telephony. SIP trunking is still a long ways off, supporting our view that Acme Packet's (Nasdaq: APKT) long-term story is bright, but the near-term picture is not immune to risks. Managed services are clearly being driven by videoconferencing and voice, a positive for Polycom (Nasdaq: PLCM)."

"Preferred plays: Our top picks are Juniper (Nasdaq: JNPR), F5 (Nasdaq: FFIV), Aruba, and Polycom in networking, and Qualcomm (Nasdaq: QCOM) and Nokia (NYSE: NOK) in wireless. We also highlight the survey suggests Cisco remains the networking leader overall, but Juniper is gaining mindshare in the enterprise."

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