When it comes to routers, Cisco is an unparalleled leader in the industry. Cisco made itself a fortune by selling routers and network equipment to enterprises, data centers and service provider networks.  But the company is now exploring its technology in some new ways, primarily for ATMs, vending machines and other things not typically connected to the Internet.

Cisco unveiled the latest Cisco 819 Integrated Services Router (ISR) Machine-to-Machine (M2M) Gateway. The ISR 819 M2M gateway is the smallest member of Cisco’s ISR range of remote office routers products is designed to provide network proficiencies to systems that are not connected to internet such as ATMs, vending machines, refrigerators, GPS systems, tollbooths, truck fleets and portable medical devices. This solid product can withstand outdoor environments with extreme temperatures.

The router weighs only 2.3 pounds, thicker than a tablet and lighter than Apple MacBook Air device, resists -13 degrees to 140 degrees Fahrenheit temperature, and is equipped for 3G connectivity. It banks mainly on cellular data to reach the Internet and is available with both GSM and CDMA technology. Cisco is hoping to introduce 4G capability by next year.

The device supports firewalls, content filtering, intrusion detection, and encryption for VPNs security features and can be remotely managed through Cisco Prime.

“The idea is to enable businesses to use the Cisco 819 ISR gateway to extend the corporate 3G/4G wireless WAN services to devices located far away from a business’ headquarters. Through the router, companies can improve the efficiency of their businesses, which, in turn, will help them save money,” said Inbar Lasser-Raab, senior director of marketing for borderless networks. “The ISR 819 can also serve as a conventional router in a remote office.”

The devices can work in many ways, as Lasser-Raab points out.  A small wireless router will send a signal to remote location when the amount of cash available in the ATM machine reached a certain level.  The router then communicates over the cellular network. The system after receiving the signal can locate which trucks are available on the road and send signal to the nearest ATM. The driver in the truck in turn would be given instructions to deliver more cash to that ATM.

HP is the other major vendor of the $30 billion enterprise switch market, which is in direct competition with Cisco.  According to a market data report, HP gained 2.5 percent for layer 2/layer 3 Ethernet switching revenue market share in the first quarter of 2011, while Cisco’s market share dropped by 2.2 percent.  Among other areas where HP overtakes Cisco in terms of percentage are in routers, by 2.5 percent, and in wireless local area networks by 2.2 percent.

The M2M trend in the enterprise mobility market is growing day by day.  The ability for smartphones and other devices to communicate with and operate remote machines is rapidly expanding.  The fastest growing markets in M2M are medical equipment, healthcare apps and in-vehicle systems.  As per Cisco’s report, there will be 25 billion connected devices by 2015 and much of the internet traffic being produced by these connected devices.

While Cisco explores some new opportunities around connected devices, it’s also undergoing a major restructuring. The company has reduced its operating cost by about $1 billion, laying off 9 percent of its workforce.  It has struggled for growth in recent quarters and closed down its Flip video camera unit, followed by the downfall of its network equipment market share.

Cisco is currently re-structuring its business models.  Cisco is focusing on its core routing and switching businesses to come back to a strong profitability path.  The latest 819 ISR M2M communication gateway offering would provide Cisco a new platform to make use of cloud computing along with fastest growing M2M communications market to reach to new business segments.