By Brad Reese, Network World |

Cisco: Video traffic to balloon 20 times in 3 years

Cisco expects Internet video traffic three years from now to be 20 times what it was in 2006, driving sales of Cisco core routers as well as other Cisco network equipment.

In just the last 9 months alone, Cisco sold 900 CRS-1 core routers (priced from $500,000 to more than $1 million). To put that stunning 9 month sales success into better perspective, it previously took Cisco three years to sell the exact same amount. Telephone and cable service providers use the Cisco CRS-1 in the center of their networks to direct Internet traffic.

"Exponential traffic growth on the Internet -- driven largely by increased deployment of video services -- is causing more and more providers to rethink their core architectures," said Infonetics Research Principal Analyst - Michael Howard. "Highly scalable, reliable and intelligent core platforms such as the Cisco CRS-1 help providers meet their needs, as business and residential consumers demand more video content in increasingly personalized bundles."

"When we announced the CRS-1 in 2004, we were seeing the acknowledgement and initial development phases of something that is now very well underway -- the convergence of service-specific voice video and data networks onto IP," said Wilson Craig - Cisco Public Relations Service Provider Segment. "At that time, though, the killer apps for the Internet were e-mail, web search and a few other web-based applications, which still didn't demand that much bandwidth." "The speed with which we today see consumer-generated video produced transmitted around the world via sites like YouTube, Facebook and MySpace was something that, frankly, we could not have predicted, and is, in combination with commercial services like digital cable, IPTV and video on demand enabled by both, driving the demand for larger, more intelligent core routers." "Interestingly, we also see more providers deploying these routers, especially in the smaller form factor like the four-slot CRS-1, closer to the edge of their networks, to facilitate development and delivery of current and future video services."

Cisco CRS-1 Simplifies POP Architecture

"The CRS-1 helps providers scale their networks while removing many of the technical limitations that have restricted development and delivery of advanced applications," said Kelly Ahuja - Vice President and General Manager of the Core Routing Business Unit at Cisco. "With CRS-1 as part of an IP Next Generation Architecture for service providers, business and residential Internet users really can have the high-quality, personalized, network-enabled experience that they want, whenever and wherever they want it."

Migration Toward an IP Next Generation Architecture

In addition to Cisco core routers, what other equipment sales do YOU see getting a boost from the phenomenal growth in Internet video traffic?

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Brad Reese is research manager at BradReese.Com, advancing the careers of 600,000-plus certified individuals in the growing Cisco Career Certification Program.

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