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January 2, 2009 1:38 PM PST

Vyatta: Beating Cisco with open networks

by Matt Asay
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Vyatta, the open-source networking company, has been turning on the heat lately against Cisco, the networking giant. Even as Cisco expands beyond its networking base with collaboration products, Vyatta's sole focus remains beating Cisco network performance at rock-bottom prices.

And yet, as called out in a recent TechTarget article, Vyatta's biggest obstacle may well be Cisco's strong brand:

Tony Iams, an analyst with Rye Brook, N.Y.-based Ideas International, said the networking market continues to grow, but Vyatta faces a challenge because Cisco has such a strong brand name, and companies are reluctant to gamble with networks because they are so critical to operations.

"Open source can be disruptive with a cheaper product," Iams said. "But Vyatta has to overcome a lot of skepticism and reassure customers that they aren't sacrificing quality."

Here's a suggestion of how to do just that: remind CIOs that the world's most demanding network (aka "The Internet") runs open source, and that even Cisco is boosting its network product line with open source-powered routers. If it's good enough for the Web, and good enough for the top network equipment vendor powering that Web, maybe Vyatta isn't such a risk, after all?

With over 20,000 downloads per month, a number that is dramatically higher than Vyatta was seeing in early 2008, Vyatta seems poised to do well through the financial downturn. The ironic thing is that as Cisco pushes more of its products to Linux, it may actually end up seeding the market...for Vyatta.

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can follow Matt on Twitter @mjasay.
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by factotum218 January 3, 2009 7:12 PM PST
"The ironic thing is that as Cisco pushes more of its products to Linux, it may actually end up seeding the market...for Vyatta."

bingo!
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by kksing January 4, 2009 5:42 PM PST
Having had experience in the setting up of network infrastructure, the concern isn't Open Source/Proprietary. It's really the assurance of the brand.

Companies go for your Ciscos and Alcatel-Lucents because they are established brands with long track records, not because they don't trust Open Source. That's the uphill battle that companies like Vyatta will need to fight, to convince CIOs that they are able to offer the same sort of reliability, and support in the long term that Cisco & other established companies can provide.

Unfortunately, at the end of the day, most companies will still 'bet' on the safe option, ie Cisco.
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by SVContrarian January 5, 2009 8:35 AM PST
What's so "unfortunate" about that kksing? People who opt for products with a proven level of support and reliability isn't unfortunate, it's good sense. Selecting "Open" products as a religious principle is foolish. Choosing "open" when it offers better support, reliability, and value is a good bet. In this case, people are voting with their dollars, and the "open" benefits just aren't there.
by thedevnull January 8, 2009 7:53 AM PST
You are right that customer perception drives vendor choice and the purchase decision. Over time you will see open source move into this market space with a vengeance. Don't underestimate them!

BTW, what is with Alcatel-Lucent? I haven't heard a customer even speak of them for YEARS!
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About The Open Road

Matt Asay brings a decade of in-the-trenches open-source business and legal experience to the Open Road, with an emphasis on emerging open-source business strategies and opportunities. Matt is general manager of the Americas division and vice president of business development at Alfresco, a company that develops open-source software for content management. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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