New Cisco (Nasdaq:CSCO) Router Doesn't Disappoint
Tuesday, March 9th, 2010
The buildup to the release of more information on the new Cisco (Nasdaq:CSCO) router, or more properly - routing system, hasn't disappointed, as the CRS-3 has a lot of companies buzzing on what it'll mean overall for the huge amount of data they are streaming and are having a hard time handling.
According to Cisco, the new product will be able to take care of over three times what their existing CRS-1 system does, which would deliver about 322 terabits a second. That's screaming!
This is coming at almost the exact right time for many companies, who have struggled to handle the exponential growth in online video and audio, whose large data streams have been difficult to deliver and manage under the older router system.
During a conference call, Cisco’s chief executive officer, John Chambers, noted the new router system is so powerful you could literally deliver all known films ever made in about four minutes time. That's fast!
Some have wondered, because a product like this only accounts for about 4 percent of the revenue of Cisco, why they have been hyping it so much as it won't be that much of a revenue generator for the company.
The answer to me is it's what I would call a marketing product. It's a product that definitely is in need, but the low number of Internet providers and companies needing it limit its distribution and profitability.
A product like this is just as important for its marketing potential as it is in providing solutions, and that makes it a potentially big winner for Cisco in the next couple of years.
Foreign competitors have been eating into market share of Cisco in the particular sector, and this is a volley by Cisco to remind the world they're leaders in the sector.
After learning what this new system can do, I think the rest of the world is definitely taking notice.
Article by Gary B
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: cisco , online streaming , online video , router , technology
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