Tuesday, March 17, 2009

FT.com / Companies / Technology - Cisco plans to cross over to server market

Co-opetition or mutually assured destruction?…

An IBM executive had described earlier talk by Cisco of a move into servers as “crossing...the demilitarised zone between networking and data centres”.

But Tim Stammers, analyst with the Ovum consulting firm, said IBM and HP were already challenging Cisco on its networking territory, with HP’s Procurve switches and IBM’s co-operation with Cisco’s smaller rival Juniper.

Analysts say Cisco is entering a lower margin, more commoditised market, but would be able to charge more for its combination product.

FT.com / Companies / Technology - Cisco plans to cross over to server market

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