Facebook Inc (FB) Wants to Innovate With New Networking Switch: Doug MacMillan

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Facebook Inc (NASDAQ:FB) wants to innovate with a building block of the internet, Doug MacMillan explained in a recent discussion on Fox Business Network.

According to The Wall Street Journal technology reporter, Facebook Inc (NASDAQ:FB) wants to transform one of the building blocks of the internet, the network switch, because the company is one of the biggest consumers of bandwidth on the world wide web.

In its announcement, Facebook Inc (NASDAQ:FB) announced the network switch it has named Wedge and its Linux-based OS the company named FBOSS which will power the network switch. The social media giant said that their network switch has the potential of ferrying data through a large data center very rapidly. Furthermore, the company said that the goal with their new device was to make it as powerful and as flexible as a server.

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According to MacMillan, Wedge is more modular, less expensive and is better at handling traffic across applications on Facebook Inc (NASDAQ:FB) like Messenger, Search and Instagram. Furthermore, he said that he thinks the company will eventually use the new switch for their Open Compute project which means that they will open up the design to other companies. He noted that this is something to observe as he said:

“It’s something to keep an eye on. It’s not the first time that a company has innovated in this area. Google has been doing this for a few years. Startups like Cumulus Networks and Big Switch have also taken the lead here in terms of trying to challenge Cisco and trying to innovate in an area of technology that hasn’t changed for many years.”

The new networking switch may pose a challenge to veterans in the industry which includes Cisco Systems Inc. (NASDAQ:CSCO) and Juniper Networks Inc. (NYSE:JNPR).

Watch the full discussion below where the app Yo was also tackled.

 

Facebook Inc (NASDAQ:FB) shareholders includes Roberto Mignone’s Bridger Management which had 655,000 in the company as of the end of March. Another shareholder is Beeneet Kothari’s Raging Capital Management which reported 647,000 shares in the company during the same period.

 

Disclosure: None

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