When was the last time the router sector was this interesting?
In the wake of a number of significant product upgrades and launches, and coupled with the challenge to the status quo from the virtualization brigade, startup vendor Compass-EOS has banked $42 million in a fresh round of investment. (See SDN Middleman: A Second Look at Juniper's MetaFabric, Cisco's ACI Gets Physical With SDN, Cisco Unveils Carrier SDN Network Fabric, and Huawei Router Passes 400G Test.)
But in an unusual twist, the company has cut its headcount from about 150 staff to about 100 at the same time. A company representative says Compass-EOS is still focused on product innovation but is now turning its attentions more to sales and marketing.
The new round, which takes the company's total funding to date to $160 million, came from existing investors – including Benchmark Capital , Comcast Ventures , and Cisco Systems Inc. (Nasdaq: CSCO) -- and two new backers (an unidentified private equity fund and Russia's RUSNANO.
The team at Compass-EOS, which was shortlisted for the Leading Lights Best New Product (Telecom) award recently, has developed a platform based around on-chip photonics that enables the production of a router that is smaller, consumes less power, has higher port densities and is easier to scale than traditional packet routing systems. (See Photonics Fire Up Radical Core Router Startup.)
The approach has caught more than just the eye of investors, as NTT Communications Corp. (NYSE: NTT) and CERNET, China's Education Research Network, have both selected the new router for their networks and the startup has secured distribution partners in Australia and Japan. (See NTT Picks Radical Compass-EOS Router, China's Cernet Picks Compass-EOS, and Compass-EOS Targets Japan With Core Router .)
— Ray Le Maistre, Editor-in-Chief, Light Reading