Report: Cisco Would Lead the Pack with This New Router


John Chambers – CEO of Cisco

According to a report by Light Reading, Cisco Systems (NASDAQ:CSCO) is not sitting tight with its CRS-3 router. Company documents reveal Cisco has a new product up its sleeve that would be a core router with the highest density in the field, if it is released before the competition has its say in the matter.

The successor to the CRS-3, which appears to be called the CTR, would have a capacity of 1Tbit/s per slot and pack 10 ports working at the speed of 100Gbit/s. Sources familiar with the company confirmed Cisco is planning to release a router of this type sometime later in the year, though dates weren’t confirmed. Since Alcatel-Lucent (NYSE:ALU) hasn’t come out with its highest Tbit/s per slot routing system yet, the earlier release of the so-called CTR would give Cisco the edge in core router density. The CTR would also have the capabilities of any MPLS label-switched system.

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Alcatel-Lucent’s 7950 router has been a big success for the company, and Cisco was quick to note that its competitor’s product was “an edge router” when you looked at it closely. Nonetheless, investors have been highly optimistic of the effect Alcatel’s signature router is having in a very lucrative segment of the industry. Analysts who have already been encouraged by Cisco may be even more enthusiastic about its prospects if this router is released in the coming months.

Cisco is already up 23 percent for the years (16 percent since the start of March) and shows no signs of slowing down as it upgrades its offerings in every corner of the business. There is only more growth on the horizon in global networking solutions, giving Cisco good reason to expect more of the same as the leading company in the field. Markets such as Africa and Latin America offer Cisco plenty of opportunity to expand.

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Despite the upward trend in the past few months (and over 50 percent growth in the past year), many analysts still consider Cisco a good buy at its current price of $24. A bullish sentiment has taken hold for Cisco stock in markets this week, and speculators are showing they don’t believe Cisco’s upward trend will stop anytime soon.

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