Cisco to Take On the Future of Video Networks

Video has certainly become a major aspect in today's Internet world, as more and more companies require video support throughout their networks. This is a good enough reason for Cisco Systems to be considering offering its customers enhanced support that is delivered in the form of a new product, expected to be officially announced later today.

 

Cisco is well-known for its initiatives towards supporting video, as, three years ago, it spent $6.9 billion on purchasing Scientific Atlanta, a major TV equipment maker. Similarly, in 2006, the networking equipment maker bought, for $92 million, a small software company, called Arroyo. Also, later in 2006, Cisco introduced its TelePresence product, which was designed to use high-definition video to allow corporate customers to re-create a virtual boardroom, basically taking video conferencing to a new and higher-quality level.

 

“We believe there is an opportunity to add a set of new technologies and new devices to the network that are specifically designed for video,” said David Hsieh, marketing vice president for Cisco's emerging technologies group. “Video is becoming the dominant source of traffic on networks. And we believe there is a huge opportunity to add new capabilities to make networks optimized for video.”

 

With the launch of the new architecture, the company boasts of providing support to those of its customers who need to build “MediaNets,” or networks that are specifically built to handle video. Cisco is expected to debut new products designed to provide video traveling over an IP network, without the annoying buffering delays and pixilation issues. One of the first products expected to be introduced by the networking giant is the Cisco Media Experience Engine 3000, or MXE 3000, which is slated to go for $50,000 a piece.

 

Despite the high price, several of the company's customers are already said to be looking forward to the introduction, as they are seeing a huge demand in bandwidth, a fact that is justified by the increasing number of PC users that spend more and more time on video sites such as YouTube and Hulu.com.

 

“One of the biggest challenges that Cisco faces is making companies realize how video can transform their businesses, “ said Zeus Kerravala, a vice president at the Yankee Group. “Cisco needs to sell video to its corporate customers as an important collaboration tool that will change how they interact internally as well as with their the customers and partners.”