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Cisco moving into software?

Martin LaMonica CNET News

Published: 18 Jan 2005 17:30 GMT

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XML and related technologies create a standardised mechanism to share information, but that mechanism does come at the cost of processing overhead, particularly for tasks such as security and a handful of start-ups specializing in XML networking, such as DataPower and Sarvega, have formed since the emergence of XML about five years ago. They provide specialised devices to speed up XML-related traffic by offloading jobs from a server onto a network device. Such jobs might include processing the flow of messages, security, or document conversions.

Cisco has indicated that this line of business is ripe for growth and investment, according to vendors and industry analysts.

One person briefed by Cisco said the company intends to create several application-aware networking products to complement its existing routers and switches. The idea is to create a line of hardware devices that can replace some back-end software products, which generally require consulting services for installation.

"They are going to be offering hardware boxes that are almost as smart as the software but are much faster, more secure, and cheaper to operate," one executive said. "It will be easier [for Cisco salespeople] to sell and can be sold through a traditional hardware channel."

One industry executive said Cisco has already begun recruiting people to work on the initiative. The target is to release an "auxiliary processing" device this year for speeding up XML traffic, the person said.

But as Cisco tries to haul in a larger piece of the technology spending pie by boosting its software intelligence, it needs to tread carefully, said Frank Dzubeck, CEO of networking consulting company Communication Network Architects. Because the scope of Cisco's application networking push is still unclear, there is a question of how many traditional integration middleware capabilities Cisco will embed in its products.

"Once you start getting into layer seven (application-aware networking), you start to get into the world of applications. And when you get into the world of applications, you start to step on the toes of your partners," Dzubeck said.

Cisco has a very close partnership with IBM, which already dominates portions of the middleware market with its WebSphere branded line of software. Other entrenched companies in the market for middleware, which covers tasks such as XML transformations and message handling, include BEA Systems, Microsoft and Tibco Software.

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