At the Panorama Capital office in San Francisco, more than two dozen engineers, venture capitalists, and technology experts gathered around a hardware device they created together.
What kind of marvel is this, you might ask? It is the world’s first open-source router.
Then, Allan Leinwand, CEO of a startup named Vyatta, began powering up the router. A programmer started downloading the RED Hat Linux operating system to his laptop through that black router, and when the screen confirmed success, the whole room erupted in cheers and high-fives celebrating their victory.
Months have passed since that memorable October afternoon, and Vyatta’s router is now ready to launch its first trial version. The official product is expected to hit the market this summer.
The Vyatta router runs on two Intel chips, but what is even more noteworthy is its software: XORP, an open and extensible router platform. This versatile open-source application can handle data traffic for large corporations just as smoothly and easily as managing a home Wi-Fi network.
A Potential Killer
And that is precisely why this router has the potential to be a killer for Cisco: Vyatta’s router costs only one-fifth of a typical mid-range product from renowned brands like Cisco. Therefore, its appeal is undoubtedly immense.
“Open source is truly competing with commercial telecommunications companies. It will force these companies to improve their products, technology, and current release methods. Prices will also inevitably drop“, stated John Todd, an expert in open-source telecommunications.
Of course, even though open-source software has captured a significant market share from Microsoft, Oracle, and Sun Microsystems, it is still challenging to “rebel” in the high-end networking device sector, which typically runs on proprietary software from Cisco or Juniper Networks.
As many IT directors gradually shift toward open source by purchasing operating systems (Linux), web servers (Apache), and databases (MySQL) to save costs, they have realized that budgets for networking devices are even larger: routers and bridges for data routing, firewalls for security, and PBXs for running office telephone systems.
In fact, Vyatta is just one of many companies attempting to penetrate this highly lucrative and largely closed market segment. “Open source is being widely adopted, and over time, it will start to have a more significant impact on the telecommunications sector“, said Peter Carbone, Chief Technology Officer of Nortel Networks.
Outpacing Cisco
However, there has yet to be any project as bold and daring as Vyatta’s in this router gamble. The idea originated from the International Computer Science Institute in Berkeley, where expert Atanu Ghosh was researching the future of broadband. Ghosh knew that to change the router’s software, he would first have to submit a proposal to Cisco or other giants—a cumbersome and tedious process.
For this reason, Ghosh and his colleagues decided to write the software themselves, integrating the most modern and advanced technologies available today, such as video on demand and VoIP. The project immediately captivated Leinwand, a former Cisco employee from its early days. “This is clearly the most delicious opportunity in telecommunications that I’ve ever encountered,” Leinwand recalled.
With Ghosh’s team advising him, last April, Leinwand came up with the name Vyatta, which means “Open” in Sanskrit. The company plans to market the open-source router to mid-sized businesses and branch offices of multinational corporations. This market segment is valued at up to $4 billion and is currently dominated by Cisco.
Of course, at this point, the telecom giants do not yet feel the heat of competition. “Open source is not a threat in the networking market, as networks are already based on open standards,” a Cisco spokesperson stated. Meanwhile, Juniper commented, “We can support any open-source solutions, as long as they are based on common industry standards“.
But if Vyatta’s router can deliver on its promises—selling for only one-fifth the price of its competitors—the company is bound to attract many customers. For many optimists, this could even be a knockout punch.
Fate
