Breaking News -
Networking:
Cisco Launches New High-End
Switch Parts
Cisco Systems Inc. introduced the next-generation of parts for its high-end
switches, meant to solidify its dominance of the market for gear that directs
data traffic on networks.
The San Jose, California-based company, the No. 1 maker of equipment that
directs Internet traffic, said the new modules for its Catalyst 6500 switches
will offer corporate and telecommunications customers faster speeds using 10-
gigabit ethernet technology, more capacity, greater cost efficiency and
integrated features like IP telephony and security.
Cisco officials emphasized all those features will come without having to
upgrade to new products as the modules can be used with existing
technology.
"The new wave of product is an evolution, an addition to today's installed
base of the Catalyst 6500 product line," said Luca Cafiero, Cisco's senior
vice president for switching.
Customers hate buying a product that three years later is outmoded, forcing
them to buy new products that require more training for employees, analysts
said.
By allowing companies to extend the life of their existing switches, Cisco
offers an attractive option for corporate customers, analysts said.
"People that have owned a Catalyst 6500 for four years really can just add
these new modules and get another four, five, six, seven years out of that
Catalyst chassis," Current Analysis analyst Joel Conover said.
The $12 billion switching market is key for Cisco, which gets about 40
percent
of the sales from that segment.
However, the market for 10-gigabit ethernet switches has not taken off, and
is
not likely to for at least another two years or so, said META Group analyst
Chris Kozup.
"Clearly, the majority of enterprise (corporate) customers are not buying
10-
gigabit ethernet products," he said, adding that nothing has driven the need
for the technology.
The bottom line at this point is companies are trying to demonstrate
leadership in the technology before demand takes off, Kozup said.
Cisco rivals in the switch market include Nortel Networks Corp., Extreme
Networks Inc., Foundry Networks Inc. and Enterasys Networks Inc., industry
analysts said.
The Catalyst 6500 switch modules are available now, ranging in price from
$4,000 to $60,000. The Catalyst 6500 line was first introduced in January
1999.
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