Cisco's metamorphosis into a software company is not without challenges

Cisco opening up of its IOS network operating system makes it clear to the industry that it wants to reposition itself as a software vendor. But a move away from its traditional business also puts it in the unfamiliar role of competing with established players in the software industry, many of whom may have been partners before. Such players include IBM, Microsoft, HP and EMC. Cisco would also need to acquire a big name software company - such as BEA Systems, which some believe has built out the network as a platform - to help it achieve its goals, say analysts.

Here are some of Cisco's other challenges as it morphs into a software firm:

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* Does it have enough software talent in-house, in terms of developers and sales staff?

* Needs to put more meat around its Service Oriented Network Architecture (SONA).

* Needs to lean more heavily on its $150 million stake in VMware, a leading maker of virtualization software for x86-based servers and desktops.

* Needs to pull away from the pack in the application acceleration space.

For the full story, see Network World Jim Duffy's analysis of Cisco and its software challenges in 2008.

What are the other challenges facing Cisco as it shifts to focus on software, and how successful will it be in meeting those goals?

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