Networking equipment maker
Cisco Systems Inc.
) has been selected by privately- owned web hosting provider,
OVH.com to provide its Aggregation Services Router (ASR) 9000
Series for expansion of its Internet Protocol (IP) network in
Roubaix, France-based OVH was founded by Octave Klaba in 1999.
It provides dedicated servers, mutual hosting, domain names and
VOIP telephony services. It owns 150,000 dedicated servers in 12
data centers. OVH.com through its own infrastructure provides
high-speed connections globally.
Cisco's router will provide highly resilient IP connectivity,
which will be able to support OVH's entire network. Further, OVH
will be able to provide speeds of up to 2 Tbps in Europe and 8
Tbps in the U.S. Thus, Cisco's ASR may be able to support
different types of traffic without any delays and hindrances,
which is quite critical in transferring video and audio
According to the Cisco Visual Networking Index, IP traffic may
grow at a compound annual growth rate (CAGR) of 23% from 2012 to
2017. Further, global IP traffic may surpass 1.4 zettabytes by
Cisco is one of the largest providers IP networking gear,
particularly routers and switches. Routers help in transferring
data, voice and video from one IP network to another. The
company, through its router business, is well positioned to
capture such high growth in IP data traffic. This might prove
beneficial for Cisco, given its product portfolio and broad reach
Cisco's revenues in the second quarter of fiscal 2013
increased 1.7% sequentially and 5.2% year over year to $12.1
billion. Products (78.0% of total revenue) were up 3.3% year over
year to $9.4 billion. Services (22.0% of total revenue) jumped
12.5% year over year to $2.7 billion.
Cisco carries a Zacks Rank #2 (Buy). Other companies in the
sector that also look attractive include
). While Infinera Corp. and Silicom carry a Zacks Rank #2 (Buy),
Juniper carries a Zacks Rank #3 (Hold).
CISCO SYSTEMS (CSCO): Free Stock Analysis
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