Graham: The only pushback we've had in the market is, 'yet another box.' Which is true. It's another point of failure. But usually the ROI is so compelling that it overrides the concern. There's always a hesitance to put any new technology in [the network], until it's proven. So what's happened with us is that customers say 'Well, I am concerned about yet another box.' Then they put our product in, we show them that we work, we demonstrate our reliability, and they deploy us.
In most companies there tends to be a cautious approach -- they buy a couple and try it out first.
Networking Pipeline: Is there any interest from other networking companies to make Peribit's product a blade?
Graham: (laughs) No, nobody's said make this a blade, stick it in there. Could they? Yes. We're slightly orthogonal
to the guys who want to do that -- the Ciscos, Junipers and Nortels of the world. I think that's because when we take out the capacity, we also take out the need to upgrade edge routers. To some extent that's a bit of cannabalization.
The analogy that works is similar to security. Security grew up outside of the main networking vendors, and then they tried to back into it. This [market] is the same. This marketplace is growing up outside of the mainline vendors. Could they come in and acquire us? Yeah, sure, it's possible. And you could implement it very easily.
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