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Cisco Debuts the $1M Interface

Light Reading
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Light Reading

List prices for routing linecards have reached the million-dollar range: Recently circulated prices for the CRS-1 show Cisco Systems Inc. (Nasdaq: CSCO) is the first to break that lofty barrier.

Sources say Cisco's price list now includes a $1.03 million entry for a four-port OC192 card for the CRS-1, Cisco's next-generation core router launched in May (see Cisco Unveils the HFR). That's for intermediate-reach (15km) optics; a similar card for very short reach (300m) runs just $330,000.

It's not the linecard and optics themselves that cost $1 million, Cisco officials say. Rather, a spokesman says the $1 million represents the total price to install a quad OC192, including extras such as I/O and a $250,000 license for the new IOS XR software -- which, incidentally, is quite a markup from the $10,000 charged for IOS.

Given that a single-port OC192 card sells for a couple hundred thousand dollars, the price isn't out of line with what others are charging, including Cisco for its own GSR 12000 platform, the spokesman says.

The importance of the list price is debatable anyway, as customers enjoy discounts of varying sorts.

— Craig Matsumoto, Senior Editor, Light Reading

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12/5/2012 | 1:19:25 AM
re: Cisco Debuts the $1M Interface

The CRS-1 architecture defines an interface card on the front and a processing card on rear - it requires 2 cards to function. The article wasn't implying pluggable optics; rather the need for this corresponding "I/O" card which includes their packet processing complexes (both in and out).

12/5/2012 | 1:19:25 AM
re: Cisco Debuts the $1M Interface
I don't understand the bit about $1M "includes extras". The article says it includes I/O and OS fee. How can an interface cost not include I/O? For removable optics? The cisco 192c's don't have removable optics. It's like saying, "oh, we've included the cost of the ASICs".
And how can the OS price be included? So it's not included for shorter distance optics?
Each card I buy includes an OS charge of $250k? I don't think so. Sounds like a wrong statement to me. They're just charging 4x the single 192c price, which seems a bit high but what choice do we have.
12/5/2012 | 1:19:12 AM
re: Cisco Debuts the $1M Interface
>>The CRS-1 architecture defines an interface >>card on the front and a processing card on >>rear - it requires 2 cards to function. The >>article wasn't implying pluggable optics; >>rather the need for this corresponding "I/O" >>card which includes their packet processing >>complexes (both in and out).

I don't think the price includes the required backplane "Modular Services Card" which I've heard lists for around $100K. Nor does it include the cost for the additional memory module which Cisco typically recommends. And $250K for IOS-XR software??? How are they going to justify that one - especially if the plan is to extend IOS-XR further down their product line.
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