With new chip-based software, Nortel enables a cheaper semiconductor device to perform the function of a small Internet router, supplanting costly hardware of the sort Cisco sells.
Thanks to that piece of silicon, the new router has about 160 times the processing power of Cisco's last comparable product, its 7200 series.
He notes that the CRS-1 is the first Cisco router to use the kind of modular software that Juniper used seven years ago.
After the June launch of the company's newest router, called the CRS-1, Cisco successfully petitioned Guinness World Records to name the machine the world's fastest networking device.
As Cisco continues its integration of network security solutions with its existing router platforms, this will result in higher sales of its security products, thereby boosting its market share.
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Both consisted of two parts, a client component running on the Cisco 819 router designed to handle machine to machine (M2M) communications and server based software which handles various tasks, such as data analytics.
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Gathering data from several of Cisco's test customers, he found that the cost to operate the router is a fifth to a half the combined energy usage and maintenance costs of the hardware that hosts the same services.
Intel, which has a special new business development unit, and particularly Cisco Systems, the fast-growing company that has 80% of the network router market, are also snapping up stakes and companies.
Juniper Networks and Cisco may have had a field day in the core router market cornering over 80% of the market and enjoying a near-duopoly until now but all that might change soon.
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In May, Cisco released the Carrier Routing System, a new high-end router designed for use at the heart of service providers' networks.
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