Cisco Beefs Up Service-Provider Product Line

Cisco Beefs Up Service-Provider Product Line Oct. 2, 2001

Cisco adds new switching and routing platforms optimized for edge and metro-area networks.
By John Rendleman

Cisco Systems Tuesday beefed up its product line for service providers with the addition of several new switching and routing platforms optimized for edge and metro-area networks.
Cisco's revenue from service providers as a percentage of its overall revenue will fluctuate, but the company's service provider business is expected to account for 25% to 50% of total revenue during the next four years, Cisco president and CEO John Chambers said in a teleconference launching the new products.

The products introduced Tuesday "are the cornerstones of our service provider strategy," says Roland Acra, group VP and general manager of public carrier and IP products. For service providers, the products can serve as the foundation of new value-added IP and data services that will generate additional revenue and attract new customers, Acra said.

The products include a new Cisco 12404 Internet Router, which is now the latest and smallest 10-Gigabit Ethernet switch in the 12000-series of routers. Also new is the IP Services Engine family of line cards for the 12000 series, which can be added to any of the vendor's 12000 series for delivery of new services. The new line cards also include a 10-port Gigabit Ethernet line for the 12400-series routers. The final product in Tuesday's launch is the 10720 Internet Router, which can be installed in providers' metro-area edge networks to optimize optical networks for IP- or Ethernet-based services.

Starting prices for the new products, which are available now, are: $25,000 for Cisco 12404; $280,000 for the IP Services Engine line cards; $225,000 for the Cisco 12000 10-port Gigabit Ethernet line cards; and $43,300 for the Cisco 10720.