http://www.lightreading.com/document.asp?doc_id=2173
New Kid on the Cisco/Juniper Block
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Is the networking industry's IP router duopoly set to become a terabit
triumvirate?
It will, if Tony Li gets his way. He's the notorious IP routing maven
who cut his teeth at [1]Cisco Systems Inc. (Nasdaq: CSCO) designing
the GSR 12000, then jumped ship to [2]Juniper Networks Inc. (Nasdaq:
JNPR), where he helped develop the industry-changing M40 Internet
Backbone router.
Now, he's at it again. Li recently moved from Juniper to the
unfortunately named [3]Procket Networks Inc., a startup based in San
Jose, Calif. (see [4]Procket Processes a Dream Team ). While Procket
flatly declines to reveal what its working on, Light Readings' sources
in Silicon Valley are considerably more forthcoming. And the facts
behind Procket add up to one of the more interesting stories in
optical networking this year.
First, the basics: Procket is working on a very high-performance IP
routing platform. Its a very high-density OC192/768 box, with
interfaces aggregated around a switch fabric, and it competes with the
next-generation routers from Cisco and Juniper, says one of Light
Readings anonymous sources.
Talk about a change in plan. Procket was originally founded by two
microprocessor experts and former employees of [5]Sun Microsystems
Inc. (Nasdaq: SUNW), Sharad Mehrotra and Bill Lynch, with the
intention of developing OC192 and OC768 components -- not a system.
That all changed when [6]U.S. Venture Partners, the lead VC investor
in Procket, brought in Tony Li - router developer extraordinaire. (The
transfer was instigated by Stuart Stu Phillips, a general partner at
USVP, and Lis former boss at Cisco).
And where Li goes, talent seems to follow. He has reportedly already
recruited two key engineers away from Cisco to help build the mondo
routing platform: Dino Farinacci, a respected IP software engineer,
and Bruce Wilford, a hardware-switching expert. (Cisco would not
confirm that they had left, but both are now listed in Prockets
automated company phone directory). Li also is in the process of
luring away at least one Juniper exec, Light Readings sources say.
In addition to losing staff to the startup, Cisco has another
excellent reason to be miffed with its former employee. Along with
USVP, Cisco was actually a lead investor in Procket. Light Reading
sources say that it funded the company with an eye to using its OC192
(10 Gbit/s) and OC768 (40 Gbit/s) components in its high-performance
routing platforms.
But now that Procket has pulled a strategy switcheroo, Cisco has not
only acquired a potentially powerful new competitor (one that it
funded, no less), its also lost a potential source of the high-speed
interfaces that it so desperately needs to fill out its routing
product line. Cisco has yet to ship an OC192 card; a spokesperson says
it will plug the gap through in-house development and acquisitions.
Last year, the vendor spent $435 million to buy StratumOne
Communications, which was developing an OC192 packet-over-Sonet (POS)
interface.
Cisco is not the only unhappy camper. Juniper also is said to have
taken umbrage - and not just with Li, its former employee, but also
with the three VC firms that are funding Procket. Thats hardly
surprising; they happen to be three of the same VCs that funded
Juniper: USVP, [7]New Enterprise Associates, and [8]Redpoint Ventures.
Juniper executives are said to have complained to the VCs that they
are now funding a direct competitor.
Juniper declined to publicly comment on the VCs actions.
The presence of Tony Li on staff adds significant bite to Procket's
attempt to take on the big dogs of the routing industry. Lis track
record of building teams that create stable router software -
especially that all-important and gnarly BGP (border gateway protocol)
code - gives Procket a huge advantage over other core router wannabes,
such as [9]Lucent Technologies Inc. (NYSE: LU) (via its Nexabit
acquisition), [10]Charlottes Web Networks, and [11]Pluris Inc.
If you step back and look at the world today, there are only two
companies that have a really stable BGP-4 product. And thats Juniper
and Cisco. And Tony Li is the common thread in both of them, says Dave
Schaeffer, CEO of [12]Cogent Communications Inc., a service provider.
Schaeffer declined to comment on other aspects of this story.
Then again, some observers suggest that Lis personality could also be
a liability.
Li is brilliant. Hes probably the most gifted BGP implementation
engineer in the world. But I understand that he has both an ego and a
temper. The volatility of his personality may prove to be a problem
for Procket, says an executive at a service provider, who requested
anonymity. You can have the most brilliant person in the world, but if
they cant work with a team, the team wont work.
Li reportedly quit his jobs at both Cisco and Juniper - leaving
multiple millions in unvested stock options on the table at each.
Industry legend has it that he nailed his Cisco resignation to his
managers door. Li declined to comment.
In an interesting twist, that manager was none other than Stu
Phillips, who went on to become a VC at USVP and lead the investment
in Procket. I guess those guys kissed and made up, says a VC at
another firm, speaking off the record.
-- Stephen Saunders, US Editor, Light Reading
[13]http://www.lightreading.com
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www.lightreading.com
References
1. http://www.cisco.com/
2. http://www.juniper.net/
3. http://www.procket.com/
4. http://www.lightreading.com/document.asp?doc_id=1835
5. http://www.sun.com/
6. http://www.usvp.com/
7. http://www.nea.com/
8. http://www.redpoint.com/
9. http://www.lucent.com/
10. http://www.cwnt.com/
11. http://www.pluris.com/
12. http://www.cogentco.com/
13. http://www.lightreading.com/
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