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Cisco's 10 Gig Ethernet Power Grab


10/3/2006 -- Pssst: got $37,500 to spare? If so, perhaps Cisco Systems Inc. could interest you in its new 8-port 10 Gigabit Ethernet module for the Catalyst 6500 Series.

The upshot, analysts say, is that Cisco's new 10 Gigabit Ethernet module gives customers a low-cost oversubscribed 10 Gigabit Ethernet port module to expand their backbone networks.

"As the cost of 10 Gigabit Ethernet continues to drop, it is important that every company be able to supply an oversubscribed card for links that benefit from the extra speed but do not require a full rate dedicated connection," writes Steven Schuchart, a principal analyst with consultancy Current Analysis.

The rub, Schuchart says, is that the Catalyst 6500 is already one of the most port-diverse products on the market. "The new 8-port card will keep Cisco firmly entrenched in its leading position in port diversity, and clearly it's a product that customers want, but [it] does not represent any kind of revolutionary change."

Cisco isn't first to market with an oversubscribed line card for 10 Gigabit Ethernet, so it's slightly behind the proverbial curve, says Schuchart.

At the same time, he stresses, the 10 Gigabit Ethernet market segment is still young -- so there's plenty of room for growth.

"Cisco needs to be a primary driver in price per port reductions to increase the market for 10 Gigabit Ethernet. This will in turn sell more switches," he writes. "The overall market won’t be affected very much by the new product, as the 8-port 10 Gigabit Ethernet card for the Catalyst 6500 is an expected move by Cisco and won't surprise anyone. It is a good addition to Cisco’s 6500 product that helps round out Cisco's overall 10 Gigabit Ethernet offering." - Stephen Swoyer

 

 

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