Well, so much for that hunk of hype. Cisco today released an impressive router that it claims can handle twelve times the traffic of its competitors offerings.
Sounds excellent, right? Not to everyone. Cisco had previously told the world that its coming announcement would “forever change the Internet” and effect a change that would demonstrate “what’s possible when networking gets an adrenaline boost.”
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They did that; their new router is an impressive technological piece. However, the market has been less tickled perhaps than AT&T who is currently testing the router. Cisco’s stock (CSCO), after a Monday rally due to the hype has stalled in today’s trading, at one point falling some 7.4% from its overnight peak.
The stock has since recovered and is up a fraction on the day, on general strength in its sector.
This just goes to show the higher stakes in hype when a company is public. If a startup claims that it is about to change the world, people might actually give it less credence. When a public company does so, the market moves and billions of dollars are created and dissipated.
The router itself is a technological marvel. It can transmit some 322 terabits a second. According to Cisco this would allow the machine to host video calls between every man woman and child in China, and stream every motion picture ever made in four minutes.
AT&T is testing the new router as part of a High-Speed 100 Gigabit backbone network between Miami and New Orleans. This network, which is more than ten times the bandwidth of a normal data trunk line, will help alleviate the strain on AT&T’s overtaxed wireless data network, as well as allowing AT&T to ramp up consumer data speeds.
Don’t tell that to the market, they were probably looking for a strategic partnership with Twitter.
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