Running a slow third behind Cisco Systems Inc. and Juniper Networks Inc. in a limited core routing market, Avici Systems Inc. has left the business upon which it was founded to fully focus on developing software for next-generation IP networks.
The company will focus on its new product initiative, Soapstone Networks, which was announced earlier this year.
Avici said it expects the final shipments of its core router products will occur by the end of 2007, and it will continue to service its products under existing contracts it has in place with its customers. The vendor added it is actively working with its customers to finalize transition plans.
The move is part of Avici’s “continuing strategic plan to drive growth and value for the company by focusing on opportunities in growing markets," said Bill Leighton, CEO of Avici Systems, in prepared comments. "While we were successful in bringing the company to profitability in 2006 and continued to do so in the first quarter of 2007, we recognize that the routing market is under tremendous pressure from alternative technologies such as Ethernet switching, and we do not believe our focus on core routers and our position as the No. 3 supplier in this market to be a sustainable growth business for the company.”
Soapstone’s plan, is to separate the control plane from the data plane in a router or switch and move the network control plane closer to the services control plane.
By making the coupling between network elements looser, interoperability problems are minimized and carriers can optimize their networks around the best building block technologies in a multi-vendor environment, said the vendor, adding that “the Soapstone control plane will exist outside the traditional router and could as easily control an Ethernet, optical or routed network.”
Avici Systems Inc. www.avici.com
