9/11/2006 -- Cisco Systems Inc. last week unveiled its new Wide-Area Application Services (WAAS) and Wide-Area File Services (WAFS) strategy for branch offices. In addition, Cisco introduced a network module for running WAAS software on its Cisco integrated services router (ISR).

Cisco's WAAS solution includes both the WAAS software and the Cisco Wide-Area Application Engine (WAE) appliance family, along with new network modules (dubbed WAE-NM) that integrate with Cisco's 2800, 3700 and 3800 Series Integrated Services Routers.

Analysts are bullish on Cisco's new WAAS portfolio, which they say helps to plug a rather conspicuous hole in the networking giant's branch office strategy. "The WAAS solution addresses a significant competitive weakness in the company's overall Application Networking Services [ANS] portfolio and provides a competitive alternative to established, competing solutions in the enterprise WAN optimization space," comments Steven Schuchart, a senior analyst for enterprise infrastructure with consultancy Current Analysis. "Cisco's previous WAFS solution provided only a small subset of the functionality that Cisco WAAS can deliver, and Cisco was at a significant competitive disadvantage to fast-moving start-ups that have been blazing trails in this market. However, while Cisco now has a competitive solution, it still faces the challenge of keeping up with the feature functionality pace set by those same aggressive start-ups."

There's a lot at stake, Schuchart says. "WAN optimization is a hot market segment, and Cisco, with its core focus on enterprise LAN/WAN systems, needed to have a competitive offering in this segment," he indicates. "This is particularly important for Cisco because of its huge installed base of branch office routing equipment, and because customers have been voicing demand for this sort of advanced functionality for some time."

Withstanding, even, the envelope-pushing pace set by the scrappy WAN optimization start-ups, Cisco's new WAAS deliverables should have an immediate impact, Schuchart argues.

"Cisco's large installed base and huge market presence will have a large impact on the overall market. Cisco's WAAS offering will have a big effect on the competitive market simply through its presence and competition in the market, but will also help to drive the market through active sales and marketing efforts," he concludes. "Competitors face multiple new challenges with Cisco as an active competitor in this market, including single-source vendor preference in the enterprise, channel management and channel lead identification challenges, and even price pressure when competing against the WAE-NM module." -Stephen Swoyer