7/13/2004 -- Since unveiling its next-generation CRS-1 router in May, Cisco hasnt rested on its laurels. Instead, the networking giant has been a veritable mergers and acquisitions (M&A) dynamo, devouring three privately-held companies in the last month alone.

Last week, Cisco recorded its third such milestone when it picked up UK-based Parc Technologies Ltd., a purveyor of traffic engineering (TE) and routing optimization solutions. All of this M&A activity begs the question: If CRS-1 reestablished Cisco as a purveyor of cutting-edge routing solutions, why is the networking giant still going elsewhere to enhance its routing technology?

In this case, the answer may have a lot to do with Parcs pedigree, which is different from Ciscos other recent acquisitions: its a spin-off from a research center established by the University of Londons Imperial College. Academic spin-off or no, Parc has developed Route Server algorithms that Cisco officials say are able to more effectively resolve network routing problems that involve complex Quality of Service (QoS) constraints.

How does Cisco plan to use the Parc technology? Cisco says it will exploit Parc's Route Server Software to help optimize Primary and Backup MPLS Traffic Engineering (MPLS TE) tunnel placement. In addition, Cisco plans to develop a hybrid TE optimization algorithm based on a combination of its own and Parc technologies. Ciscos MPLS Management product portfolio will absorb Parc's Route Server software, and the latter technology will be exposed as part of Cisco's IP Solution Center (ISC).

"Our customers are looking for efficient technology with Quality of Service guarantees, reduced congestion, efficient back-up planning, fast restoration, and optimal provisioning. Cisco and Parc together have created a market leading MPLS traffic engineering planning and optimization application that brings immediate value to Cisco's customers," said Cliff Meltzer, senior vice president for Cisco's Network Management Technology Group, in a statement.

In many ways, Parcs search algorithms are tailor-made for a specific market segment: Cisco officials say that Parcs Route Server Software can help service providers improve overall network utilization, deliver high quality services, and reduce capital expenditures.

At $9 million, Parc comes relatively cheaply, at least, in comparison to Ciscos $89 million acquisition last month of routing specialist Procket Networks. Procket specialized in concurrent services routers, with additional expertise in silicon and software development. -Stephen Swoyer