There's a rumor making the rounds today that Google is building its own router. The report appeared first at the SD Times blog, was picked up at Bnet and is now being discussed on Slashdot. The gist of the rumor is that Juniper loses a big client and Cisco should be worried. Most of Google's custom hardware development has focused on optimizing its in-house systems for peak efficiency, rather than developing commercial products. Google (GOOG) is declining comment.
Last year there were reports that Google was developing its own 10 Gigabit Ethernet switch, citing "a secret internal initiative that was launched when it realized commercial options couldn’t meet the cost and power consumption targets required for their data centers." See Andrew Schmitt's blog post for more.