A New Era for Networking

February 23, 2006

by Charles Waltner, News@Cisco

Internet protocol networking is here to stay. Now Cisco Systems is focused on making it do more.

After playing a key role in developing Internet protocol (IP) as the technology keystone to modern, digital multimedia communications, Cisco Systems is now embarking on several new initiatives to shape the next era in IP networking. Cisco looks to greatly expand the benefits IP technologies can bring to businesses, telecommunications companies, and consumers.

In Cisco's vision, the IP network is the common platform for not only connecting any possible communications device or system but the lynchpin to helping applications and information technology resources work more efficiently.

For enterprise customers, Cisco has launched its Service-Oriented Network Architecture, or SONA, which creates an interactive service layer for supporting more efficient use of information technology resources, such as servers, processors, storage devices, and databases. "Through SONA, large businesses are able to more cost-effectively utilize and scale their computing resources, allowing them to leverage the other investments they make in their IT infrastructure." says Charlie Giancarlo, Cisco's senior vice president and chief development officer.

Robert Whiteley, a telecom and networks analyst with Forrester Research, says Cisco's SONA architecture addresses the biggest concern for CIOs. "We see a new language showing up in IT mission statements," Whiteley says. "Previously, they focused on cost savings. Now, they often focus on bringing greater simplicity to IT management."

Cisco is also making major efforts to help telecommunications companies harness IP technologies to transform their businesses with support for standards efforts such as IP Multimedia Subsystems (IMS) and development of its own Service Exchange Framework. As with major corporations, communications companies are convinced of the importance of IP networking, and now they want it to do more. "Service providers' change in attitude towards IP technology has been almost overnight in some ways," Whiteley says. "Rather than just supplying bandwidth, they are now focused on how best to integrate their services and applications with their IP networks."

Cisco also plans to provide communications companies more help integrating video into their IP networks. With its recently announced intention to buy TV set-top box builder and video transmission equipment vendor Scientific-Atlanta, Cisco will have comprehensive expertise in technologies for managing the transmission of videos across the entire network.

For individuals, Cisco is quickly developing a wide-range of products for the "connected home," especially through its Linksys division. Combined with Scientific-Atlanta's set-top video services, Cisco is well position to bring a new generation of digital multimedia devices and applications into the home.

At Cisco's worldwide analyst conference in December, John Chambers said the new efforts will help Cisco sustain 10 to 15 percent growth over the next five to 10 years. He emphasized that crucial to his company's success is its willingness and ability to invest in technologies three to five years before the market reaches its prime. Cisco will use its new initiatives and its research and development resources to pioneer new technologies while building market momentum. "Our overall approach has never changed," Chambers said. "It's about spotting the transitions and planning for where we think they'll go."

By vigilantly tracking its customers' concerns and requirements, Cisco's approach has consistently proved successful, Chambers added. Voice-over-IP (VoIP) is the latest example of Cisco's foresight, he added. Cisco was an early adopter of VoIP and entered the market while it was still a very new technology. Now, Cisco has become the world's leading supplier of business phone systems while IP has become the de facto standard for corporate voice communications.

Chambers already sees excellent signs that Cisco is on the right path with its new technology initiatives for businesses, communications companies, and individuals. "Now, within the last year, customers are saying we got it right. The network will be the platform,'" Chambers said. "IP has become the network of networks, whether that's data, voice or video communications for businesses or individuals."

But industry observers say Cisco faces a number of challenges beyond technology in its quest to shape the new era of IP networking. While Cisco has proven proficient at building networks, it needs to become better at showing customers how networks can help their businesses, says Zeus Kerravala, a vice president at the Yankee Group, a technology research company. "SAP can say that companies that run its applications are 30 percent more productive. Can Cisco say that?" Kerravala says. "Cisco needs to help customers figure out how to use the network to do things better."

He adds that Cisco must bolster its sales and support operations to focus not just on excellent technical assistance, but, more importantly, on excellent business assistance. He says Cisco's Internet Business Solutions Group is addressing this need, but Cisco has to make more strides to effectively change the view of the network as a tool primarily for reducing operational costs.

SONA, however, should help, Whiteley says. Cisco's SONA architecture is the key to reducing the complexity of managing IT resources in major corporations. In many ways, computer technology is a victim of its own success. Businesses and other organizations now operate so many applications, services, databases, data storage facilities, and other resources that management overhead is threatening to eclipse the benefits these technologies offer. "Service-oriented architectures are extremely top-of-mind for enterprises," Whiteley says. "With SONA, Cisco brings the network into the application and resources virtualization discussion."

These are just a few of many technical and business challenges Cisco faces as it works to shape the next era for Internet communications. But Chambers says such challenges are just part and parcel of how Cisco approaches its business. Creating revolutionary communications technologies requires courage and perseverance, but Cisco's customers expect nothing less from the world's leading networking equipment vendor. "To be a leader, you have to take risks by being the first," he said. "When you are out there all alone, some self-doubt is natural. But if you wait until the path is obvious, you are too late. It's our job to help point the way."

Charles Waltner is a freelance journalist in Oakland, Calif.