Cisco Systems faces threat to core router business
Latest technology that helps direct the flow of information around data centers is becoming rising general in gear made by Cisco Systems Inc.'s CSCO -3.50% competitors, challenging the Silicon Valley pioneer's dominance in its core router-&-switch market.
The idea, called software-defined networking, or SDN, permits companies to treat the mish-mash of tools that underpins their data centers as if they were a single, faultless system. Lots of products use a standard known as Open Flow, which analysts say could permit companies to purchase more basic routers & switches and then reprogram them for their networking requirements.
Using SDN could save companies cash & enable them to employ smaller amount technicians. It's not known how large the market is for software-defined networking products because the idea attracts a lot of different definitions, but main givers of business technology including VMware Inc. VMW +2.33% , Hewlett Packard Corp. HPQ -1.54% & worldwide Business Machines Corp. IBM -0.28% are moving insistently into the area.
For its part, Cisco has approached the so-called SDN trend with a standard they announce is more complete than Open Flow. Executives there are taking a wait-and-see attitude toward adopting the Open Flow technology, which could undermine the company's 66% enterprise-market share in routing & 75% hold on switches, according to research firm Gartner Inc.
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