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Is Cisco worth the premium?

Nortel loves to shout from the roof tops whenever it sees arch rival Cisco falter, and this week Tony Rybczynski, director of strategic enterprise technologies at Nortel, writing in his Hyperconnected Enterprise blog is citing a recent Gartner Dataquest report that found that Cisco's share by ports of the Ethernet switching market fell to 37%. He mulls that the results mean that two-thirds of enterprises are saving money or finding better performance elsewhere, and that given Cisco's share by revenue is 73%, "customers are paying way too much to Cisco."

He adds:

Cisco is not going to lower their prices any time soon since they could lose 15% of their revenue base if their revenue share tracked their port share! In fact, as a mature technology, one would expect Ethernet prices to come down over the years …. my friends at Gartner tell me this is generally true but NOT for Cisco.

He concludes that: "If Cisco is only a 400 pound guerilla, then don’t feed him as if he were a 700 pound one!"

More Cisco Subnet items:

* Cisco to release Mac unified communications client

* Former Tony Blair advisor to headline Cisco Networkers Europe

* Cisco promotes from inside for U.S. channel chief job

* Why Promoting Wendy Bahr was the Right Move

* BGP Looking Glasses

CCNA lab – 2600s and 1800s 

* Win an iPod Touch; win a copy of 'Firewall Fundamentals' book

Go to Cisco Subnet for more Cisco news, blogs, discussion forums, security alerts, book giveaways, and more.

Recent Cisconet blog entries

Network World's IT Buyer's Guide: Cisco products

Subscribe to Network World's Cisco Alert, which includes a weekly digest of all Cisco Subnet items

 

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About the Cisco Subnet Blog

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The Cisco Subnet blog is the official blog of the Network World Cisco Subnet community, managed by Editor Linda Leung. Cisco Subnet is the independent voice of Cisco customers and is your gateway to daily Cisco news, blogs, opinion, books, prize giveaways and more. Visit the Cisco Subnet home page daily and while you are there, subscribe to the Cisco Alert e-mail newsletter, which includes news and views generated by the Cisco Subnet community as well as Cisco-related stories on Network World and elsewhere on the Web.

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The opinions expressed in this Weblog are those of the writer and may not represent the opinions of Network World.

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