Cisco unveiled what it called the “internet for the future” Wednesday, new products and a strategy it says will help fuel an economy that’s hungry for more and faster internet bandwidth for the next couple of decades.
“It’s a really big day, a proud day for us,” said Chuck Robbins, the San Jose networking giant’s chief executive, as he announced a unified chip architecture called Silicon One, new routers, plus an optics and software strategy that he said has been more than five years in the making.
“The bandwidth and the traffic that’s gonna be generated in 2022 will be equal to aggregate traffic that’s been generated to date, that’s the magnitude of what we’re solving for,” he said, adding that it’s important to build the technology that will be the backbone of “hyped” 5G networks of the future.
The company’s goal is to make delivering internet traffic faster and more efficient for businesses while keeping down costs, Robbins and other Cisco Systems executives said during the live-streamed event in San Francisco.
Some of Cisco’s big customers were on hand for the announcement, such as Google, Microsoft, Comcast, AT&T and Disney Studios. The studio’s vice president of technology innovation, Ben Havey, said on stage that the company “is all in” with Cisco’s vision.
“When you think about the network, it’s a river that runs through our business,” Havey said, citing the importance of Disney employees collaborating from different places around the world, and delivering movies to the company’s customers. “There’s that streaming thing, which I think is catching on,” he said.
Cisco’s stock rose slightly, about 0.5 percent, to $44.34 in midday trading Wednesday.
“This is one of Cisco’s biggest announcements in the last five years,” said Patrick Moorhead, president and principal analyst for Moor Insights & Strategy, on Wednesday. “I see this solving many customer problems through custom ASIC (application-specific integrated circuit) silicon as it’s one architecture for many networking use cases.”
Eyal Dagan, Cisco senior vice president for silicon engineering, used different types of vehicles, from scooters to cars to ships and airplanes, to compare the different ways internet traffic is delivered today. He said developing Silicon One was a big task and likened it to “a single engine technology that can power all different kinds of vehicles.”
Cisco’s move could affect fellow Silicon Valley companies Broadcom, Arista Networks and Juniper Networks, Moorhead said. Shares of Broadcom and Juniper rose at lest 1%, but Arista’s stock fell 1% Wednesday.
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