XO Communications continues its push into the larger enterprise space this week, announcing a new partnership with Cisco Systems to develop next-generation IP services that are aimed at the larger business space where Cisco already has well-established relationships. XO also announced that it has completed its national network upgrade, deploying the Cisco CRS-1 at its network core to add the bandwidth needed to offer 10 Gigabit access links from 83 major interconnection spots around the U.S.

The Cisco agreement will enable XO to more rapidly expand its IP services, under the XO IPfolio brand, as XO competes in the business space.

“With Cisco, we are looking at how we take our existing partnership to the next level to be more of a strategic partner,” said Vince Margiotta, vice president of product management in XO’s Business Services group. The three-year agreement to develop next-generation IP services will include multiple joint efforts, Points said, that will address specific customer needs but also include joint national efforts at marketing and customer training and a major service creation effort.

“Last year, we launched the MPLS VPN [multiprotocol label switching Virtual Private Network] with them and we had great success in the small to mid-sized business space,” Margiotta said. “Now we are moving it up into mid-sized and enterprise businesses. Cisco has a strong reputation with them and XO can leverage those relationships and that brand. We can talk about premise and core solutions in a way we couldn’t before. They are going to be coaching and potentially investing in service creation – on our product road map and theirs – to develop new products that would be uniquely XO and Cisco.”

The XO network upgrade increased capacity in the face of exploding demand, said Eric Points, senior product manager in XO’s carrier service group. By adding capacity, and making 10 Gig links available at the prime Carrier Hotels and interconnection spots, XO expects to be able to reach many more customers with higher speed links.

“We have hit more than 83 key points, like Carrier Hotels, to support 10 Gig because these are the locations we need to build to and be at so customers can cross-connect to us at 10 Gig level,” Points said. “We are finding the marketplace demand for 10Gig ports is so great, other carriers have not been able to deliver. It’s a great opportunity to say, we are here, we have the capacity for you to serve your customers and that’s for cable, DSL, and big content providers.”