[188950] in North American Network Operators' Group

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Re: NCS5K?

daemon@ATHENA.MIT.EDU (Saku Ytti)
Tue Apr 26 13:35:36 2016

X-Original-To: nanog@nanog.org
In-Reply-To: <CAMDdSzN3Zn=QYaRXAaH+A8qH91EJKOjrJNzU4W=AYgY0QCpPMw@mail.gmail.com>
Date: Tue, 26 Apr 2016 10:35:29 -0700
From: Saku Ytti <saku@ytti.fi>
To: Colton Conor <colton.conor@gmail.com>
Cc: NANOG <nanog@nanog.org>
Errors-To: nanog-bounces@nanog.org

On 26 April 2016 at 07:02, Colton Conor <colton.conor@gmail.com> wrote:
> Do you actually think that Cisco would sell at NCS 5501 at the price point
> that Arista is going to sell a 7280R for? Spec wise they are very similar
> (except Arista has 8 more SFP+ ports and two more 100G ports). Arista is
> pricing the 7280R inline with Ciscos ASR9001. I doubt Cisco will offer a
> NCS 5501 for the same price as an ASR9001.

This seems more question to economists than network engineers. But the
rudimentary understanding I have of free market it means that
competitors cannot sell products competing for same customers at
significantly different price point. On micro-level this may not be
true, we can find anecdotal examples of vastly differences prices for
similar products but on macro-level I'm sure Cisco, Arista, Alu,
Huawei, Juniper etc are all competitive, I base this solely on the
fact that they do exist (albeit Huawei may get unfair tax kick-backs
to enhance its competitiveness).

-- 
  ++ytti

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