This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cisco Eyes Facebook-Fueled Network Boost

NEW YORK ( TheStreet) - The growth of bandwidth-hungry applications on social networking sites like Facebook (FB - Get Report) and enterprise applications from the likes of Oracle (ORCL - Get Report) could spell big bucks for networking behemoth Cisco (CSCO - Get Report).

The tech bellwether revamped its router technology for service providers on Tuesday, unveiling its new family of ASR 5500 products. Although hardly the sexiest corner of the tech sector, routers are big business for Cisco and rivals such as Ericsson (ERIC) and Nokia Siemens Networks at a time when more and more traffic is being pushed through networks.

Cisco's eyeing a Facebook-fueled router boost.

"For Cisco, this is a very critical play in terms of our growth, especially in the mobility sector," explained Murali Nemani, Cisco's director of service provider mobility, during an interview with TheStreet. " Mobile Internet traffic growth puts a lot of strain on the network and it also creates bottlenecks for consumers that want to access high quality, Internet-based content."

The tech giant, which recently saw its shares slump on weak fourth-quarter guidance, is touting the ASR 5500 as a key tool helping service providers wrestling with an explosion in Internet connections. Cisco predicts mobile Internet traffic will increase 18-fold by 2016.

Nemani explained that the ASR 5500 offers 10 times the performance of its predecessor, the ASR 5000, in terms of throughput, Internet connections and app 'transactions' on a service provider's network.

Last year Cisco confirmed that 20 of the world's top 25 service providers are using the ASR 5000. Orders for the router also increased 100% year-over-year during the networking giant's recent third quarter; although Cisco clearly sees an opportunity to grow revenue with the ASR 5500.

Nemani uses the example of social networking phenomenon Facebook, which is home to so many network-hungry mobile applications.

"We think the ASR 5500 accelerates a lot of what Facebook is trying to do, particularly in the mobile environment," he told TheStreet. "Facebook has an app called Friend Mapping that's a constant update, happening by the minute."

Service providers can therefore better support the developer community's attempts to develop new apps with the new router, according to Nemani. "It's enabling that world of apps to come to fruition," he said. "It's not just consumer apps, but enterprise apps, like Oracle and Siebel."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CSCO $29.26 -0.58%
FB $80.54 0.07%
ORCL $43.93 -0.79%
AAPL $132.54 0.88%
GOOG $540.11 -0.44%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs