Cisco lost share across several markets in Q1, most dramatically in SANs, according to investment firm UBS. The firm suggests the backwards steps might be due to company distraction.
In a bulletin this week, UBS notes that early trends in 2009 show Cisco losing market share across virtually all product segments, "possibly due to distractions within the company" as well as increased competition. "Niche" markets were the hardest hit, the firm states -- Layer 4-7 switching, WAN optimization and SAN switching.
Dell'Oro Group believes the hit in SANs is due to Cisco "channel conflict" -- a reference to its entry into the server domain of HP and IBM. In core routers, it was a rather downcast birthday party for the CRS-1.
UBS indicates the distractions might be Cisco's ambitious moves into emerging new markets while neglecting existing ones:
SAN performs worst w/ new data center dynamics possible. Cisco entering ~30 mkt adjacencies and reallocating ~$1.0B of its workforce.
Huawei could be the leading competitive culprit. UBS notes the Chinese giant has been extending share gains from the last several years, due to strong 3G wireless spending in China, among other factors.
More from Cisco Subnet:
Cisco CRS-1 birthday candles blown out
Cisco unveils rack server for UCS
Cisco participates in first Data Center Bridging plugfest
Did Cisco win big AT&T router RFP?
Has EMC rustled Data Domain away from NetApp, HP and Cisco?
Cisco founder wants to go faster, farther
Win training and books from Cisco Subnet
Follow Cisco Subnet on Twitter.
The Cisco Subnet blog is written by Network World managing editor Jim Duffy 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.
Follow Jim Duffy on Twitter