8/31/2004 -- Earlier this month, Cisco Systems Inc. quietly closed the book on its acquisition of dot.com-era highflyer Procket Networks, which Cisco picked up earlier this year for a cool $89 million.

Procket Networks, youll remember, specialized in concurrent services routers, with additional expertise in silicon and software development.

So what did Cisco get for its $89 million outlay? G. Hunt, an analyst with consultancy Current Analysis, says that Procket gives Cisco technology that can be incorporated into next-generation core and edge router platforms to better address performance, scalability, reliability, and cost issues facing carriers as they move into mass deployment of advanced IP-MPLS services.

In a certain sense, analysts say, Procket was a bargain: Cisco gets the fruits of the companys five years of experience and near $300 million of research and development into carrier class IP routers. As it turns out, Hunt notes, Procket was tackling many of the same issues that are on Ciscos to-do list, as well. Prockets objective was to address key issues regarding large scale deployment of IP networks, specifically scalability, a pay as you go modular architecture, silicon designed specifically for high capacity packet forwarding and software downloadable processors, says Hunt.

Technology is just one half of the equation, however: Cisco also gets access to Prockets braintrust, as well. Is this starting to sound like $89 million well-spent? Cisco has not just purchased technology that it can plug into its product development cycles where appropriate, but has also purchased a world class engineering team, that if it remains intact and motivated could yield favorable results in multiple arenas of Ciscos future product lines, he notes.

If Cisco plays its cards right, perhaps a majority of Prockets more than 130 engineers will stay on board. If the networking giant somehow bungles the transition, however, it could find itself bleeding high-end routing expertise -- in the form of defections by former Procket engineers to competitors.

Elsewhere, Procket brings highly sophisticated network processors that were produced from a fully custom silicon development process. Hunt says this process differs from typical ASIC development, which typically involves compromises or built-in limitations resulting from the use of standard components. Ciscos IOS could also benefit from Prockets own work in this area, Hunt speculates, noting that the latter company had developed a network operating system that addresses issues such as self-correcting, self-diagnosing and self-monitoring, and network stability.

Best of all, Cisco eliminates a competitor Procket whose flagship routers were directly aimed at Ciscos own 10000 and 12000 series routers. Procket could also help Cisco stanch the trickle of customers to rivals such as Juniper Networks, which has grown its share of the enterprise and carrier router markets at Ciscos expense. The purchase of Prockets leading edge technology can aid Cisco in delivering next- generation platforms more timely than if it were to duplicate the efforts already expended by the Procket team, thus eliminating any product or feature gaps which would enable another competitor to gain a foothold, writes Hunt. Cisco can leverage the programmable fully custom silicon designed for next-generation IP routing with performance, scalability, reliability, rich QoS, and dramatically reduced cost points to meet carrier demands from equipment providers for their mass deployments. nalysis: Ciscos Procket Acquistion an $89 Million Bargain

Earlier this month, Cisco Systems Inc. quietly closed the book on its acquisition of dot.com-era highflyer Procket Networks, which Cisco picked up earlier this year for a cool $89 million. (http://tcpmag.com/news/article.asp?EditorialsID=639)

Procket Networks, youll remember, specialized in concurrent services routers, with additional expertise in silicon and software development.

So what did Cisco get for its $89 million outlay? G. Hunt, an analyst with consultancy Current Analysis, says that Procket gives Cisco technology that can be incorporated into next-generation core and edge router platforms to better address performance, scalability, reliability, and cost issues facing carriers as they move into mass deployment of advanced IP-MPLS services.

In a certain sense, analysts say, Procket was a bargain: Cisco gets the fruits of the companys five years of experience and near $300 million of research and development into carrier class IP routers. As it turns out, Hunt notes, Procket was tackling many of the same issues that are on Ciscos to-do list, as well. Prockets objective was to address key issues regarding large scale deployment of IP networks, specifically scalability, a pay as you go modular architecture, silicon designed specifically for high capacity packet forwarding and software downloadable processors, says Hunt.

Technology is just one half of the equation, however: Cisco also gets access to Prockets braintrust, as well. Is this starting to sound like $89 million well-spent? Cisco has not just purchased technology that it can plug into its product development cycles where appropriate, but has also purchased a world class engineering team, that if it remains intact and motivated could yield favorable results in multiple arenas of Ciscos future product lines, he notes.

If Cisco plays its cards right, perhaps a majority of Prockets more than 130 engineers will stay on board. If the networking giant somehow bungles the transition, however, it could find itself bleeding high-end routing expertise -- in the form of defections by former Procket engineers to competitors.

Elsewhere, Procket brings highly sophisticated network processors that were produced from a fully custom silicon development process. Hunt says this process differs from typical ASIC development, which typically involves compromises or built-in limitations resulting from the use of standard components. Ciscos IOS could also benefit from Prockets own work in this area, Hunt speculates, noting that the latter company had developed a network operating system that addresses issues such as self-correcting, self-diagnosing and self-monitoring, and network stability.

Best of all, Cisco eliminates a competitor Procket whose flagship routers were directly aimed at Ciscos own 10000 and 12000 series routers. Procket could also help Cisco stanch the trickle of customers to rivals such as Juniper Networks, which has grown its share of the enterprise and carrier router markets at Ciscos expense. The purchase of Prockets leading edge technology can aid Cisco in delivering next- generation platforms more timely than if it were to duplicate the efforts already expended by the Procket team, thus eliminating any product or feature gaps which would enable another competitor to gain a foothold, writes Hunt. Cisco can leverage the programmable fully custom silicon designed for next-generation IP routing with performance, scalability, reliability, rich QoS, and dramatically reduced cost points to meet carrier demands from equipment providers for their mass deployments. -Stephen Swoyer