Networking startup Netcore systems last week became the first company to ship a terabit class switching product to a customer site.
In addition the company announced it had raised another $18 million in funding which it claimed would provide it with, "the resources to now expand our manufacturing, distribution and customer service capabilities to meet global market demand."
Netcore is one a select group of startups that analysts believe could challenge Cisco as the Internet equipment provider of the future. Netcore is competing with startups such as Pluris, Avici and Argon, which have all raised tremendous amounts of cash to develop terabit devices.
Netcore claimed it differentiates itself from several of its competitors, which are IP centric, by combining the functions of an IP router and an ATM switch in its Everest Integrated Switch product.
The company said it had delivered the product for evaluation to US Internet service provider (ISP), Savvis, giving it the capacity to deliver data over the Internet at speeds of 2.5 terabits per second.
"When people talk about Netcore's Everest product, I am reminded of an Ascend 550 on steroids - except that the ATM switching capability is combined with line rate IP routing," said David Passmore, an analyst with research company Netreference.
Passmore added that he expected a whole slew of terabit devices to hit the market during the coming year.
Mike Gaddis, chief technical officer at Savvis, said the ISP's plan for a future infrastructure was one that allowed it to leverage its ATM heritage yet do a better job of integrating IP services into ATM's built in Quality of Service capabilities. "NetCore's Everest product appears to embody those capabilities and warrants evaluation," said Gaddis.
The startups, plus market incumbents such as Cisco and 3Com, are about to battle over a share of what will be, according to research company The Cimi Corporation, a $380 billion expenditure on Internet infrastructure over the next 10 years.
Netreference's Passmore believes that as the startups bring their products to market, they become more and more likely to be takeover targets.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago