Tuesday, June 19, 2007

Network Traffic To Grow Up To Six-Fold Annually

The increased use of video and further online collaboration will drive network traffic to an annual growth rate of between 300% and 500% over the next several years, said Cisco Systems Inc. Chairman and Chief Executive John Chambers, who added this is beyond most expectations.

"It's the second phase of the Internet - it will be about collaboration," Chambers said during a keynote address at the NXTcomm telecommunications industry trade show on Tuesday.

Cisco supplies the switching network equipment for government, corporate and carrier customers. But Chambers said he believes the next phase of growth will come from layering services through that network. The executive touted the combination of different services like video and music integrated into various environments such as the car, mobile handset or home.

"It won't be about transport, it'll be about the changing business model," he said, adding that the consumer is now driving demand for new services.

Other services include the expanded use of telepresence, a high-end video conferencing product that many companies are offering.

Touting the increased productivity of collaboration, he cited Cisco's own acquisition history. In November 2005, Cisco closed the acquisition of television cable set-top box maker Scientific Atlanta in 45 days. The company took eight days to close the acquisition of WebEx earlier this year.

On net neutrality, Chambers said he is more concerned with building out the network and considers dividing up the lines and speeds a second priority.


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