9/12/2005 -- Cisco Systems Inc.'s Carrier Routing System (CRS) 1 won another convert this month, when Cable & Wireless awarded Cisco a contract to build the IP core element for its Next Generation Network (NGN).

It’s a big win for Cisco, which gets to sell 15 of its mega-buck CRS-1 routers to Cable & Wireless, which plans to deploy them throughout the United Kingdom. The carrier plans to use its CRS-1 backbone to deliver advanced services for voice, data and video over a single converged network.

Cisco claims to have shipped 100 CRS-1 units since that system debuted last year. Nevertheless, the Cable & Wireless win is an important validation of that platform’s capabilities, suggests Jeff Ogle, a principal analyst for carrier infrastructure with Current Analysis Inc.

"[A]s an international carrier, [Cable & Wireless'] procurement and selection process is known to be rigorous and thorough. Cable & Wireless is also a prestigious customer with its international presence and strength in certain geographic markets," he notes.

At the same time, Ogle points out, Cisco’s win probably isn't as big as it might have been. "Since the award was not specific on the exact models of the CRS-1 deployed, one would assume they are mostly the eight- and 16-slot units as opposed to the full-blown CRS-1, [which is] capable of 92Tbps of throughput and [scales] to a physical level of 72 equipment cabinets," he writes. This isn’t so much a reflection of the CRS-1's complexity or bulk, Ogle says, but a constraint of the carrier market. "Although most vendors are offering multi-chassis or scaleable solutions, at this time it seems that most carrier and service providers are still opting for the smaller units to be strategically deployed in the network for concentration of users on a more localized basis."

Nevertheless, the deal does have the potential to bring in beaucoup bucks for Cisco. "The potential revenue stream resulting from this [next-generation] network build out could be substantial if the services offered take off," Ogle argues. "This will drive the need to build out all nodes to their fullest capacity, expand existing nodes and bring new nodes onto the network as the network density rises or new geographic regions are offered coverage." It could also help a beleaguered Cisco regain some ground against arch-rival Juniper Networks Inc. "The revenue will help in market share recognition and potentially result in a gain back some of the market share Cisco has been losing over the last couple years to rival Juniper Networks."

Ogle sees the deal as good news for both Cisco and Juniper, however, insofar as it’s another example of red-hot demand for terabit routers. "The market for core IP Terabit-level routers is forecasted to hit almost $2 billion this year with good growth potential as most carriers and service providers are actively building out their NGN networks, all generally slated to go live in the 2006 time frame." -Stephen Swoyer