Goldman Sachs' Weekly Commtech Performance Summary

) and Cisco from the IP transformation. The analyst wrote, ""Last week, Deutsche Telekom hosted a webinar outlining its IP transformation initiative aimed at transitioning it to an all-IP network (termed “TeraStream”) over the next decade, including (1) shutting off the legacy PSTN (circuit-switched) network throughout DT's European properties by 2018, and (2) ultimately deploying all applications from cloud data centers, utilizing new technologies such as Software-Defined Networking (SDN), Content Delivery Networks (CDN), virtualization, and optical IP." Goldman Sachs recommends to sell Brocade and Juniper Networks and remains neutral on Aruba,

) to align with the increase in peer multiples. Jankowski raised Gigamon's PT from $30 to $34 and Ciena's PT from $22 to $24. Goldman Sachs further commented on Gigamon noting, "We view Infoblox as Gigamon's closest peer and we continue to believe it warrants a premium multiple (GS target EV/sales of 6.0X) to Gigamon as we believe (1) Infoblox's core DDI market is less competitive than Gigamon's network visibility market, (2) Infoblox is less exposed to the long-term threat of appliance model disaggregation due to software defined networking (Infoblox's database-like core products focus on control plane complexity rather than the data plane), and (3) Infoblox's expansion into network security allows it to address a much larger market opportunity than Gigamon's core network visibility fabric market."