Cisco's Chambers: Telecom entering 'Phase II'

Telecom is not coming back from the dead: it's entering Phase II

The telecommunications and Internet industries are entering their second phase of growth and reinvention, brought about by collaboration and Web 2.0 technologies, Cisco CEO John Chambers proclaimed at the NXTcomm conference in Chicago this week.

During a keynote address that kicked off the show, Chambers sought to dash a popular notion that telecom is clawing its way back from the dead after the bubble days of 1999-2002. Instead of a resurrection, telecom and the Internet industries are entering a stage of reinvigoration and evolution due in large part to the upsurge in use of Web 2.0 and collaboration technologies -- like Cisco's Telepresence videoconferencing systems and recent WebEx Web collaboration acquisition.

Use of these types of technologies will double, triple and even quintuple the traffic loads on the Internet and other IP service networks over the next three years, Chambers said. These trends are increasing traffic loads on Cisco's internal networks by 300% to 500% per year, he said, and will allow 20 broadband-connected homes in the United States in 2010 to generate more traffic than the entire Internet in 1995.

The increased loads will drive major network upgrades for service providers, enterprises and consumers, as well as drive new value-added service revenue for operators, richer experiences for consumers, and productivity gains for enterprises, Chambers said.

"There's a productivity opportunity in 2007 for 5-plus years," he said. "It's enabled by video on any device, with any capability."

Chambers used Cisco as an example of the increased productivity enabled by Web 2.0 and collaboration. He said Cisco was able to close its multibillion dollar Scientific-Atlanta and WebEx acquisitions within days through the use of these and other Internet-based technologies.

He also said Cisco's CRS-1 core router, which debuted in 2004, was developed for video-driven applications and traffic. The router, he said, can process 1 billion calls and tens of millions of video sessions.

But in a reversal of previous trends, consumers are now driving innovation that is migrating up to the enterprise, instead of enterprise innovation trickling down to consumers. That's due in large part to the social networking, video sharing and wiki-enabled practices of Internet-connected consumers that facilitate collaboration and user-editing.

"Consumers won't be paying for dumb plumbing," Chambers said. "They're paying for the [communications] experience. The next generation of innovation is driven from the consumer up" and it will last for the next decade, he said.

Over time, every device in a consumer's home will be able to connect to the Internet, he said. The challenge for Cisco, its competitors and service provider customers is to take the complexity out of home networking to spur further adoption, sales and enrich the customer experience, he said.

This, in turn, will drive an uptake of Web 2.0 and collaboration applications, which will drive the two- to fivefold growth in traffic that allows all participants to profit -- including the telecom industry.

"Telecom is not coming back from the dead," Chambers said, "it's entering Phase II."

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?