Cisco Systems Enters a Parallel Universe

Posted on May 20th, 2009 by admin in Smart Grid

The electric power transmission network in USA has approximately 157,000 miles of high voltage electric transmission lines, and many more thousands of  miles of local distribution power lines. Most of the business and technology press, financial analysts and media outlets have considered this vast network necessary but boring compared to electronics and Internet technologies. The electric power network has been a kind of parallel universe. Cisco Systems (NASDAQ: CSCO) just entered that parallel universe.

On 18 MAY 09, Cisco announced it’s initiative “to deliver an end-to-end, highly secure network infrastructure solution that helps utility companies and their customers manage power supplies and energy consumption more efficiently.” In other words, Cisco has entered the Smart Grid business. This is a really big deal for the power industry, Cisco and it’s investors. Cisco will provide the kind of major league competence and reputation to help the utilities migrate beyond their ancient legacy systems. The company will provide the complete communications infrastructure for all these power transmission systems which have until now mostly used highly customized networks for utility communication and control of the grid.

RocketCap has learned from an industry insider that Cisco has already assigned 100 people to this initiative. No wonder, given Cisco claims their projections for the Smart Grid communications infrastructure market reach $20 billion/year annually by 2014.

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