Re: Cisco's Strategic Moves Into Large Service Provider Space via SBC
Thread- Recently I've posted a few links to Cisco moving out of the enterprise and into the large SP space. As we all know, it's a strategy they've been working on for a very long time. Practically speaking, they are moving from the enterprise up the chain as the recent news below indicates. In other words, access first, metro next, then finally, maybe the core.
It was just yesterday I read some details about CSCO's DSL access strategy. I'm sure it was timed to coincide with today's SBC announcement. CSCO is pushing their foot into the door of the major LECs. Who afterall, are the real money(billion dollar level) behind infrastructure upgrades. CSCO's seems to be doing it with their packet voice strategy.
I'm assuming they are going to carriers and saying, "Look if you want to do packet voice, then you should start using our switches because we are going to build Cisco QoS into them. When you get ready to rollout packet voice, you'll have our system end-end with the ability to do quality voice."
I have to say, I'm surprised to read that SBC apparently may be re-considering ALA/AFCI as their access technology suppliers. But who knows, SBC may issue a statement saying they need all three? I rarely see where a RBOC just dumps a vendor or two. It's not good because they love for their suppliers to compete with each other. But I'm not exactly sure how all three can participate in SBC's DSL plans. Unless SBC is planning on boosting the $2 billion/year spending forecasts.
I noticed yesterday, AFCI said they have not gotten any revenues from SBC Project Pronto yet. But, "...have a product in testing and it looks very promising." As I posted upstream, Alcatel in it's last CC never even mentioned Pronto by name. So I'm not sure what to make of SBC's Project Pronto plans anymore? Other than it's getting confusing and "Project Pronto," may have been a poor choice of words. -MikeM(From Florida)
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Cisco Unveils GlobalDSL Strategy to Help Service Providers Worldwide Achieve True Market and Service Potential of Exploding Broadband Access Industry
Three-Part Strategy Introduces IP DSL Switching across Cisco 6000 Platform and Helps Service Providers Increase Revenue with Delivery of DSL to Any User in Any Place with Any Service
SAN JOSE, Calif. April 18, 2000-- Cisco Systems, the worldwide leader in networking for the Internet, today announced its GlobalDSL strategy to help service providers achieve the true market and service potential of DSL-based broadband access. The Cisco GlobalDSL strategy allows service providers to increase revenue by expanding their addressable market and delivering a broader, richer set of value-added service offerings. The strategy is designed to open up new broadband opportunities for service providers by overcoming barriers to DSL deployment in three key areas: IP+ATM Multi-service Solutions, 100% Market and Service Reach, and DSL Mobility.
"The DSL market has the potential to be on a much steeper growth path," said Enzo Signore, Director of DSL Marketing for the Cisco DSL and Integrated Access Business Unit. "The total access market -- including dial, ISDN, cable, DSL and wireless -- is forecasted to have over 50 million subscribers in North America alone by the year 2003. The DSL market is predicted to have around 10 million subscribers in the same timeframe. By overcoming obstacles that have impeded the widespread growth of DSL, the Cisco GlobalDSL strategy will enable service providers to more quickly and broadly deploy high-speed services over DSL, and will make DSL one of the most widespread access technologies in the market."
"Cisco's GlobalDSL strategy offers clear benefits to service providers worldwide, not just in the way of services and reach, but also in scale," said Ron Westfall, Senior Analyst at Current Analysis, a leading industry analyst research firm. "The GlobalDSL strategy puts Cisco in a position to be the major catalyst for a DSL mass market."
IP DSL Switching -- Foundation for Cisco GlobalDSL Strategy
The foundation for the Cisco GlobalDSL strategy is IP DSL Switching, which was introduced today across the entire Cisco 6000 DSL family. Powered by Cisco IOS software, the Cisco 6000 IP DSL Switch family allows service providers to deploy a new caliber of premium, managed IP+ATM data, voice and video services -- for business and consumer applications -- over a single, flexible, cost-effective access network. This breakthrough platform is a revolutionary step above and beyond the ATM-based smart DSLAMs and the ATM- or frame-based ``dumb' DSLAMs being deployed today....
biz.yahoo.com
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SBC, Cisco in Multibillion-Dollar Deal
By Duncan Martell
SAN FRANCISCO April 19, 2000- SBC Communications Inc. and Cisco Systems Inc. will announce on Wednesday a deal that the companies said would be worth billions of dollars over the next 21 months, with SBC agreeing to make Cisco, the biggest maker of computer-networking equipment, its preferred provider of networking gear. For Cisco, the agreement is its largest ever with a Baby Bell. For San Antonio-based SBC, it is a continuation of efforts to augment its data-communications services for businesses. Precise financial terms were not disclosed.
The deal, a Cisco executive said, reflects customers' demands that Cisco provide a complete solution. Customers don't want to buy boxes and pipes and put it all together themselves," Larry Lang, head of service provider marketing for Cisco, said in an interview.
Because of the explosive growth of the Internet, companies that provide the networking infrastructure, such as Cisco, Alcatel SA of France, Lucent Technologies Inc., Nortel Networks Corp. of Canada and others, are racing to sell next-generation equipment that can transmit voice, data and video across one network to firms such as SBC, AT&T Corp., MCI Worldcom Inc. and others.
Doubling Seen In Three Years
In a statement to be issued on Wednesday, SBC said that it expected sales of its data services to double in the next three years. SBC said that it would use Cisco's networking gear primarily to provide superfast Internet access through DSL, or digital subscriber lines, in the five Midwestern states served by Ameritech Corp., another Baby Bell that SBC bought last year.
A Cisco spokesman said that the deal was the largest that Cisco, headquartered in San Jose, California, had made with a Baby Bell. Tom McGrath, president of SBC's data unit, said talks between the companies had been going on for two years but had intensified in July.
Cisco has, to an extent, been seeking inroads into the lucrative $300 billion telecommunications equipment market in the last two years. With this deal, McGrath said, Cisco convinced the telco firm that Cisco gear could handle SBC's data traffic with reliability. "We have increased our level of confidence in (Cisco)," McGrath said.
Besides providing DSL technology and products to SBC, Cisco will also supply so-called EVPN technology, which allows for secure connections and communications among different office sites of a company.
The two corporations said their deal also called for Cisco to provide SBC with more flexible and efficient dial-up access to networks, a technology that allows DSL customers to switch easily between Internet service providers and corporate local networks, and technology that can transmit voice, data and video simultaneously across one network within a company.
dailynews.yahoo.com |
