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Packet inspection/traffic management

Cisco Ready to Quit Load Balancers

Cisco Systems Inc. (Nasdaq: CSCO) is ramping down its Application Control Engine (ACE) products for the Catalyst 6500, a move that "reflects more of a shift away from the application delivery controller [ADC] market," analyst Erik Suppiger wrote in a report issued Friday.

This would be the Layer 4 through 7 appliance market, where F5 Networks Inc. (Nasdaq: FFIV), the dominant player, has been eating into Cisco's market share for years. Other competitors include Citrix Systems Inc. (Nasdaq: CTXS) and A10 Networks Inc.

ACE, which is a load balancer, has had future development cut, and salespeople are being asked to stop selling it, according to a segment of Suppiger's report published in Barron's.

A10 officals told Light Reading late Friday that they plan to aggressively expand a buyback program they've had for Cisco gear. (A10 runs buyback programs against all its competitors.) — Craig Matsumoto, Managing Editor, Light Reading

pwidman 12/5/2012 | 5:20:57 PM
re: Cisco Ready to Quit Load Balancers

It appears Cisco is stating this is a fact and no longer a rumor according to CRN


 


From the CRN article:


In a statement e-mailed to CRN, a spokesperson for Cisco said: "Cisco routinely reviews its business to determine where it needs to align investment based on growth opportunities. In assessing the data center market, which is undergoing a fundamental transformation within virtualization, cloud, and new service delivery models, Cisco has decided it will not develop further generations of its ACE load-balancing products."


 


http://www.crn.com/news/networ...


 

patentchoi 12/5/2012 | 5:20:57 PM
re: Cisco Ready to Quit Load Balancers

Does this include the virtual load balancers as well ?


 


This opens up a gaping hole in their portfolio and it will be interesting to see whether they acquire or OEM to fill it.

Pete Baldwin 12/5/2012 | 5:20:55 PM
re: Cisco Ready to Quit Load Balancers

> It appears Cisco is stating this is a fact and no longer a rumor


Correct: Cisco is confirming the halting of ACE development.  We've now received that statement too.


Thanks for pointing it out.


So, victory for F5.  What other implications might this have?


Soupafly 12/5/2012 | 5:20:53 PM
re: Cisco Ready to Quit Load Balancers

This is an interesting move.


To me this says that the functionality that Load Balancers delivers will be absorbed into either a SDN model, a WAN acceleration model (you only really need balancing for key apps & traffic, using it for everything is overkill & expensive unless your at significant scale or a specific niche like finance) or the functionality itself is rapidly becoming redundant and absorbed by the server & application layer platforms, be that virtualised or a dedicated formation. (An arguable position, if you look at many of the leading edge architectures, especially SOAS designs.)


 

shlomicohen 12/5/2012 | 5:20:53 PM
re: Cisco Ready to Quit Load Balancers

I am expecting OEM with RDWR or even takeover.

patentchoi 12/5/2012 | 5:20:49 PM
re: Cisco Ready to Quit Load Balancers

My guess is that some of this functionality will be absorbed by UCS. The interesting question is whether Cisco is betting the (server) farm on that solution.

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