Light Reading
6:00 AM For all the talk of a software-and-services makeover, Cisco might not be ready to let the switch/router market fall prey to SDN

Buying Into the New Cisco

Craig Matsumoto
Valley Wonk
Craig Matsumoto
12/11/2012
50%
50%

6:00 AM -- If it's true that tomorrow starts here, as the new Cisco Systems Inc. (Nasdaq: CSCO) campaign claims, then which tomorrow is it?

Because on Monday, the same day Cisco launched that ad campaign, Pica8 Inc. announced a reference design combining a commodity switch with software-defined networking (SDN). For some people, that's the sort of development that hammers another nail into the traditional router's coffin.

So, while "tomorrow" could be the blossoming of Cisco into a whole new business, it could equally be the start of the SDN commoditization that some have predicted since they first heard about OpenFlow.

If it's the latter, Pica8 isn't even the start. Intel Corp. (Nasdaq: INTC) announced its own SDN-minded reference design, a switch called Seacliff Trail, in September.

It's no given that the existence of SDN means that all routers and switches commoditize down to zero. But if it does, Cisco's "tomorrow" offers a way out.

One thing separating Cisco from its rivals, to hear CEO John Chambers tell it, are its deep relationships with governments -- national and civic leaders. If Cisco really wants to sell more services into their big projects, such as smart highways and smart grids, maybe it should stockpile some technologies, or even some consulting knowledge, outside the traditional IT circles.

Whichever directions it heads in, Cisco seems intent on acquiring its way there, at least partially.

"We have gone too long without any major M&A," CEO John Chambers said during Friday's analyst day in New York. He said Cisco has left money on the table, turning down perhaps a 1 percent gain in revenues in recent years by not expanding its horizons. "You will see us more active in the M&A side."

Chambers is probably talking about acquiring more pieces like Meraki and NDS. But it would be telling if the company took a really bold step in some lateral direction. I don't even know what it takes to be a better urban planner, but if there's a way to merge that expertise with technology, maybe that's where the allegedly new Cisco ought to look.

That's a longshot, though. For all the talk of software and services, it's likely Cisco's moves still revolve around the preservation of the switch/router empire. Tom Nolle of CIMI Corp. has similar reservations; "the big risk for Cisco is continued self-delusion," he wrote Monday, in a blog entry about Cisco's machine-to-machine (M2M) aspirations.

— Craig Matsumoto, Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Valley Wonk
Comcast joins Google in asking for a flexible-rate optical standard, rather than 400G or terabit, but that's easier said than done
Cisco, Juniper and other more traditional Interop speakers might get overshadowed by the forces of virtualization
The Open Networking Summit has climbed the hype curve, but the conference should cling to its roots as a techie discussion forum for software-defined networking
The coalition's chairman says all these companies plan to further the SDN cause and don't have a 'nefarious' angle
Big vendors are reportedly banding together to unify SDN's approach but is it more about steering the conversation?
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
1959 Newsreel: Make Phone Calls – From Cars!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/24/2014
Meet the Phantom Network for NFV
Ray Le Maistre, Editor-in-chief, 10/23/2014
Like Us on Facebook
Twitter Feed