| Wednesday, December 10, 2008
Having determined that its growth in the enterprise has pretty much stalled, Cisco is looking at video to help it sell equipment to carriers. To do that it’s positioning video traffic as the new data — ready to take over the web. Because if you’re going to convince service providers to shell out for equipment that can process 6.4 terabytes of data per second, by golly, there needs to be 6 terabytes of traffic to handle. Video files are fat enough to make that threat a reality.
For Cisco, all video — from teleconferencing to cable — is the answer to its growth problem. Its executives anticipate video adding up to $20 billion to the equipment maker’s bottom line. Cisco is betting that cable operators and carriers panicked by the rise of video content are going to start building their own optimized video networks that Cisco calls a medianet. The company believes that others, such an enterprises and content creation companies, will need their own medianets.
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