Cisco adds to networking lines

The networking giant today rolled out another wave of new equipment and associated enhancements that span its high-performance switching lines and remote access equipment--two hot areas that are driving growth at Cisco .

In particular, Cisco continues to focus on adding support for Gigabit Ethernet--the latest speed enhancement to classic Ethernet--to various parts of its switching lines, underscoring the tempered approach the company has taken in delivering high-speed upgrades.

Cisco executives said the new gigabit-speed Ethernet equipment is based on technology from Granite Systems, a late 1996 purchase that was thought by some to be one of the company's less successful acquisitions--a view supported by the relatively slow pace that Cisco has brought the technology to market.

But Granite veterans dispute the notion that Cisco mishandled its entry into the Gigabit Ethernet market. "I think there's probably a lot of misunderstanding," said Les Poltrack, senior product manager at Cisco for gigabit solutions, and a member of the Granite team that came over via the acquisition. "I think the reality is more important."

The market for gigabit-speed devices based on Ethernet, the dominant means to connect PCs and servers on a network, was once filled with a slew of start-ups, including Granite. But competition has led to a rapid market consolidation, as major networking players snap up gigabit networking technology. Only a few small independent companies remain.

All the major competitors in the networking arena, such as 3Com, Nortel Networks, and Cabletron Systems, are making serious gigabit bets. Even overseas entrants, such as European giant Alcatel have dipped into their war chests for a piece of the action; the French company snagged Packet Engines in October for $315 million in cash.

Cisco's Poltrack characterized current use of the technology as being in "the early stages of deployment," with implementations largely coming from switch-to-switch network installations. More customers are now looking to deploy gigabit speeds in server-to-server or server-to-network system connections, he said.

Among the additions to Cisco's portfolio are: