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IBM Makes Chips Behind New Cisco Router

When you pay between $250,000 and $2 million dollars for a router you'd expect to get the best. Cisco a while back announced such a router, but it wasn't until today that IBM stepped up to tell everyone that they're making the chip that powers this expensive router. Looks like IBM is doing a great job of expanding into different markets.

International Business Machines Corp. said on Wednesday it is making the customized computer chip behind Cisco Systems Inc.'s new, bigger, faster router for directing heavy Internet traffic. IBM, based in Armonk, New York, has long worked closely with Cisco, which makes equipment for routing network and Internet traffic, both by making chips for it and by collaborating on either design elements. Cisco's new router will cost between $250,000 and $2 million or more per unit when it is introduced in July. The company is trying to hold onto market share in the highly profitable market for advanced networking gear.

News source: Reuters

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