On Tuesday, Cisco unveiled a heavy-duty router for managing Internet traffic, as it seeks to regain market share it has lost in the arms race to manage telecommunications networks.
Cisco said Tuesday its new CRS-3 router has 12 times the capacity of rival equipment. For example, executives said the device can handle simultaneous video calls for every person in China. The router, which is used by telecom carriers to power the Internet backbone, replaces the company's aging CRS-1, which was introduced in 2004. Cisco competes in the core router market with Juniper Networks, which has updated its products more recently than Cisco.
Cisco said the CRS-3 can deliver a connection of 1 gigabit per second to nearly every home in San Francisco. Chief Executive John Chambers said the new router provided more than just a boost. The product is supposed to be "smarter" allowing it to direct traffic based on the priority of the data.
Cisco believes that kind of muscle will be necessary to support a dramatic surge in data consumption on fixed-line and mobile networks over the next several years. And the company is betting heavily that both consumer and enterprise video will drive a huge amount of that growth. "Video is not just the killer app," Cisco CEO John Chambers said. "It enables new business models, new health care models, new productivity models." Chambers also said Cisco is expanding beyond its role as "a plumber" to become a business partner and consultant for businesses looking to leverage new technologies. That's a strategy that could pay big dividends as vertical markets such as health care and education increasingly look for ways to use technology to connect with their customers and with each other.