After reporting the first quarterly loss in its history and seeing its stock price
dip six percent Wednesday, Cisco Systems returned Thursday with upbeat news
that it has expanded its technology and marketing relationships with
Internet and media giant AOL Time Warner.
AOL Time Warner, the world’s largest ISP more
than three times over (and that doesn’t count its international subscribers,
CompuServe subscribers or Gateway.net subscribers), is looking to double the
capacity and coverage of its AOL Transit Data Network (ATDN), and it plans
to use Internet routers from Cisco’s flagship 12400 family to do it.
The routers will add capacity, performance and scalability which will allow
AOL to increase its network size, and significantly increase its points of
presence (POPs).
The entire 12000 series of Internet routers are based on a distributed
architecture that delivers an IP+Optical networking foundation. According to
Cisco, the new 12400 family deliver the high levels of scalability and
performance and are capable of guaranteeing high priority packet delivery —
a combination that Cisco said makes it the premier platform for building
10Gbps OC-192/STM-64 IP+Optical infrastructures.
“Providing products and services to build-out AOL Time Warner’s core and
backbone networks, and expand their network up to OC-192 speeds are critical
steps in helping extend their reach and offer the most innovative services
to its customers,” said Keith Fox, vice president for marketing at Cisco.
The expanded relationship between the two companies also sweetens the pot
for Cisco. Utilizing its newly expanded reach into the media world, AOL will
allow Cisco to market its products and services across a range of
traditional and interactive media properties including the AOL service,
Fortune.com and Time Warner print and cable divisions.
“This agreement highlights the value and variety of marketing resources that
AOL Time Warner can offer our partners,” said Bob Pittman, co-chief
operating officer of AOL Time Warner. “Cisco has been a leading partner for
core IP technology for years, and their continued leadership and innovation
helps us provide the best online and cable access to consumers everywhere.”
Fox added, “America Online is one of our most valued technology customers.
With this agreement, we can better meet our range of advertising,
sponsorship and marketing needs by expanding our online marketing programs
across AOL Time Warner properties.”
Still, Cisco is not AOL’s only networking technology partner. The company expanded a similar agreement with Cisco competitor Foundry Networks in March.
Under that deal, Foundry agreed to provide AOL with networking products and services in exchange for advertising across AOL properties including the America Online service, Netscape.com, Time Inc. publications and on the Turner Broadcasting System.
