http://www.nytimes.com/2008/01/28/technology/28cisco.html?_r=1&th&emc=th&oref=slogin Cisco to Sell Faster Switch for Flood of Remote Data By JOHN MARKOFF Published: January 28, 2008Cisco Systems plans on Monday to introduce a network switch for corporations grappling with rapidly growing Internet data transfers and the increased use of applications that draw on remote data storage, known as cloud computing.
The switch, called the Nexus 7000, will provide a sharp increase in traffic capacity over the company's current products, to 15 trillion bits of data a second.
Cisco, of San Jose, Calif., the world's largest producer of network equipment, offered a range of examples to try to capture the significance of the increase in speed. It said the switch could transfer all 90,000 Netflix movies in 38.4 seconds or send a two-megapixel digital image to every human being on earth in 28 minutes.
Cisco has made a significant bet on the rapidly expanding data demands of the consumer Internet. Its Nexus system, which will eventually replace a product line that represents about a third of its $35 billion business, has required roughly $1 billion in research and development costs and the efforts of more than 500 engineers in the last four years, the company said.
Cisco sees the market for the product as corporate computing operations and Internet service providers now struggling to keep up with the torrent of data being produced by a broad range of new online services including movie downloads and Internet video games.
Industry analysts said the system is likely to have a notable impact on the way companies design data centers, and represents the possible dominance of a new version of the Ethernet networking standard that Cisco is designing to handle torrents of digital data.
In marketing the new switch, Cisco will emphasize that it will cut the energy costs of large data centers. Changing the design of a data center, made possible by the need for fewer networking interfaces, could reduce a data center's energy use by 8 percent, Cisco says.
The analysts also said that the Nexus product line, which begins at $75,000 and will sell for far more in advanced configurations, is expected to put new pressure on competitors like Juniper Networks, Force10 Networks and Brocade Communications Systems.
"I expect that Cisco will do well as compared to other network vendors that have not made the same investments into the data center," said Bob Laliberte, an analyst at the Enterprise Strategy Group research firm, who was given an advance briefing on the new product.
A number of industry analysts said they were awaiting a similar announcement from Juniper Networks, but added that they thought it would fall short of the Cisco switch.
Nick Lippis, editor of the Lippis Report, a publication that tracks the $9.7 billion data center equipment business, said, "I anticipate that Juniper will have port density, high performance and availability, but will not be able to match the intellectual property of Nexus."
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