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Summary:

A slew of news out this morning ranging from AT&T’s $1 billion expansion in its network, to Cisco’s update of its unified computing system highlights the need to invest in networking — both inside the data center and on the long haul fibers between them.

A slew of news out this morning — ranging from AT&T’s $1 billion expansion of its network to Cisco’s update of its unified computing system — highlights the continued need to invest in networking. We’re piling on compute power and boosting storage at a much faster pace than our networking infrastructure can handle — both inside the data center (GigaOM Pro sub req’d) and on the long haul networks running between (GigaOM Pro sub req’d)  them. There isn’t really a Moore’s law that pertains to networking.

Which is why in some cases, it’s just a matter of plunking down more cash to add gear and perhaps undersea capacity, as AT&T said it plans to do for business networks. Cisco is taking a doubled-side approach to the networking bottleneck by providing servers that can deliver faster and easier networking inside virtualized data centers with an upgrade to its unified computing system, as well as building routers for long haul and edge networks that can handle a whole lotta terabytes. Last month Marvell upped the data center networking ante by announcing 40 gigabit Ethernet chips for when 10 won’t do.

And back to the long haul networks, Cisco sold its massive ASR-9000 core network router to NTT Communications Corp. last week,and today, EETimes quotes NTT CTO Doug Junkins as explaining why isn’t pleased by the higher prices for advanced networking gear (the optics components are 10-30 times more expensive than for 10 GigE gear), but is ready to take the plunge because of customer demand:

“We are a wholesale IP transit provider, and our highest growth is in 10G Ethernet ports for new customers,” said Junkins who is also vice president of IP development for NTT Communications’ business network unit. “We have customers today bundling more than ten 10G Ethernets from our backbone to their net, so the day 100G Ethernet is available, we will start provisioning for it,” he said.

It’s not just consumers downloading video or the love of smartphones that’s causing bandwidth demand to skyrocket, but the need for access to software, platforms and infrastructure as a service by businesses and our increasing reliance on the network for improving productivity and seeding innovation.

  1. I think one of the problems with AT&T is that they under estimated not only the demand for iphone but under estimated it’s success so now they are caught with bandwidth problems which they are now addressing.

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  2. Anhtony Pursley Tuesday, April 6, 2010

    I wish one thing that they would address is there to our level service offerings to its customers in the Southeast on their broadband offerings on their landline customers a higher price in the Southeast lower quality of service compared to outside BellSouth region higher upstream CAP AT 430 $42.95 6.0 service to AT&T $40.00 higher upstream 768 for cheaper price! Encloses two websites of the two different services not the one ATT brand for all.
    http://www.att.com/gen/general?pid=10891

    http://www.bellsouth.com/consumer/inetsrvcs/index.html

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  3. Captain, our wallets can’t take it anymore! We’ll have to pawn the Dilithium Crystal, sirrah!

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  4. [...] types of technological breakthroughs are key as we want to keep cramming more information through our pipes, while also lowering the overall cost of sending that information. It’s not enough to figure [...]

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  5. [...] Cisco’s ASR-9000 router introduced in 2009 to deliver terabytes of capacity at the edge, has seen a lot of success despite naysayers questioning the need for that much bandwidth. This latest fiber build out is [...]

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