Cisco Code Hacker Arrested

A 20-year-old British man has been arrested in connection with the alleged theft earlier this year of Cisco Systems Inc. (Nasdaq: CSCO) source code, the vendor has confirmed (see Cisco's IOS Code 'Compromised').

The unidentified man was arrested following raids at two locations on September 3, according to a report on FT.com. He has been released on bail awaiting formal charges under the U.K.'s Computer Misuse Act.

Cisco spokesman David Cook says, "We can't really say any more for legal reasons. It's in the hands of the police now. When the incident first happened we contacted the FBI. They've done their investigation, and now an arrest has been made."

In a prepared statement, Cisco states that it is "encouraged that an arrest has been made. We view the arrest as what will likely be one of many steps in this matter. We will take every measure to protect our intellectual property."

— Ray Le Maistre, International News Editor, Light Reading

corecritter 12/5/2012 | 1:15:12 AM
re: Cisco Code Hacker Arrested
..."I've seen it on paper, but not in the lab," says AT&T Chief Technology Officer Hossein Eslambolchi, who just decided to extend by five years a contract to buy from Avici Systems (AVCI ) rather than Cisco. Cisco router chief Mike Volpi waves off criticism that the CRS-1 will be a disappointment. He says Cisco shipped one unit in August and that it is being evaluated by a dozen other customers.

CUSTOMERS WAIT. Still, evaluations could take a year or more, and Cisco could lose important deals in the meantime. China Telecom (CHA) is close to awarding a handful of contracts that could top $500 million, say insiders. While it relied almost exclusively on Cisco for big routers in the past, the Chinese carrier is expected to give much of the business to two teams: one comprised of Huawei and Avici, the other Ericsson and Juniper.

"Anything less than 100% [share of these contracts] would be an embarrassment for Cisco, and anything under 50% is a disaster. And I'm hearing numbers like 20%," says Tom Nolle, founder of telecom consultant Cimi Corp. China Telecom declined to comment for this story. Cisco's Volpi says the company is "in decent shape with China Telecom," but he won't say how much of the contract Cisco is likely to get.

Even impatient customers, such as BellSouth, are giving Cisco the time it needs to meet their needs. "Cisco hasn't fallen out of the race," says Kaish. Still, if it doesn't pick up the pace, its best chance to regain hot-growth status may slip away for good.


zher 12/5/2012 | 1:15:10 AM
re: Cisco Code Hacker Arrested Huawei also won the China Guangdong province Internet Backbone upgrade contract.

Sprint is also looking into Juniper for some new projects.

materialgirl 12/5/2012 | 1:15:05 AM
re: Cisco Code Hacker Arrested Because Huawei is partnering with AVCI, it sounds like they lack a core router.
ruready 12/5/2012 | 1:15:03 AM
re: Cisco Code Hacker Arrested

Huawei does have a core router. Cisco is already losing at the edge, especially in China.
prv_n 12/5/2012 | 1:15:00 AM
re: Cisco Code Hacker Arrested Pray for Cisco, all of you! It wont last ,much.

Light-bulb 12/5/2012 | 1:14:56 AM
re: Cisco Code Hacker Arrested Hmm... Cisco is losing? Huawei has a Core router, and Avici makes the world go round?
Stop the insanity. Huawei couldn't spell core router (Let alone in English) 2 years ago. A CORE router isn't a new area of expertise for a company it IS the company. The level of support alone that a core product requires, Huawei couldn't even dream of. Yes, try to buy a box from Huawei and see what kind of support you get here in the states. Granted I'm tainted, I'm under the belief that Huawei shouldn't even exist, but hey proprietary theft... no biggy right? A company that steals source code to have a compatible box should be shutdown. But it is China afterall isn't it? Piracy is the norm, and expected. Why pay when they can get it for free. It's ok because they are a competitor to Cisco right? If it was Cisco that did this, it would still be front page on CNN, not to mention LR.
Juniper and Cisco are it for core routers. Avici is a pipe dream that will either be acquired or retired. Call me wrong please and back up the point. Avici doesn't have a TAC that can support great call volume, How many employees do they have?
If you all don't understand... Markets Change. Cisco is in change, but they know where to be, they know where the high margin business is at. If Avici posed a credible threat, hmm yea I think Cisco would have bought them instead of pursuing the CRS. Oh yes... the CRS. Who else has a router that can scale to that degree? Answer: NO ONE.
I'm continually amazed at Cisco's leadership. Yes let the bashing begin, but what other company has come up with so many firsts? What company still continues to lead in developing standards? What company still creates great customer satisfaction by delivering products that really work, and work as claimed? (Avici SURE DOESN'T)
Packets are changing and evolving. IP core routers are changing. COS, QOS, dedicated per flow bandwidth, On demand IPSEC creation, MPLS... how are networks going to scale to meet new demands? Most companies haven't a clue, they just try to get through the year, at the very least Cisco knows how to design 5 year network plans. Avici can't, and Huawei can't either. Juniper Can, and Cisco Can.
The world makes sense yet again.

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