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Cisco launches new high-end switch parts

CHICAGO: Cisco Systems Inc. on Monday introduced the next-generation of parts for its high-end switches, meant to solidify its dominance of the market for gear that directs data traffic on networks.

The San Jose, California-based company, the No. 1 maker of equipment that directs Internet traffic, said the new modules for its Catalyst 6500 switches will offer corporate and telecommunications customers faster speeds using 10-gigabit ethernet technology, more capacity, greater cost efficiency and integrated features like IP telephony and security.

Cisco officials emphasised all those features will come without having to upgrade to new products as the modules can be used with existing technology.

"The new wave of product is an evolution, an addition to today's installed base of the Catalyst 6500 product line," said Luca Cafiero, Cisco's senior vice president for switching.

Customers hate buying a product that three years later is outmoded, forcing them to buy new products that require more training for employees, analysts said.

By allowing companies to extend the life of their existing switches, Cisco offers an attractive option for corporate customers, analysts said.

"People that have owned a Catalyst 6500 for four years really can just add these new modules and get another four, five, six, seven years out of that Catalyst chassis," Current Analysis analyst Joel Conover said.

The $12 billion switching market is key for Cisco, which gets about 40 percent of the sales from that segment.

However, the market for 10-gigabit ethernet switches has not taken off, and is not likely to for at least another two years or so, said META Group analyst Chris Kozup.-Reuters