This week's expansion of networking initiative looking more like a defensive move rather than offensive
Cisco latest Borderless Networks announcement, which included some new low-priced stackable switches, is viewed by some analysts as more of a defensive than offensive move by the company. The price points and modular uplink upgrade capabilities are seen by Oppenheimer & Co. as a response to HP and Juniper, rather than a capability the two competitors would have to respond to.
Writes Oppenheimer analyst Ittai Kidron in an investor bulleting on the Cisco rollout this week:
Cisco introduced a refresh to its fixed switching portfolio, better positioning the company in price-sensitive environments and responding to growing competitive pressures…we view the pricing flexibility offered with an upgradable uplink module as the key selling point. We believe Cisco’s new fixed switches could help the company compete against HP and Juniper, which already offer this upgrade flexibility.
Cisco unveiled the fixed configuration Catalyst 3560/3750-X series and the 2960-S. The switches are priced from $1,995 to $5,200, and feature modular two-port 10Gbps Ethernet uplinks, as well as PoE and PoE+.
With the modular uplinks, “Cisco no longer forces 10GbE adoption in fixed switches,” Oppenheimer says. By allowing customers to choose between 1G and 10G uplinks, Cisco lowers the upfront cost of the switches – which were previousy 30% to 40% higher than competitors, Kidron notes in his report:
Cisco has effectively leveled the switching pricing environment
In a nutshell, rather than going on the offensive with the Borderless Networks architecture, Cisco is defending its leadership position and looking to gain back lost revenue and mindshare from price-sensitive enterprises that are perhaps ready to spend again coming out of the Great Recession.
More from Cisco Subnet:
This is Network World’s Cisco Subnet news alert in which we focus on the top items from Cisco Subnet, your source for Cisco news, blogs, discussion items, security alerts, giveaways and more.
Cisco said to be readying major upgrade to CRS-1The scoop on the New TSHOOT Course and ExamCisco shipping 160G Ethernet card for ASR 9000
Another analyst sees Cisco UCS deployment delays
If Cisco buys you, you’re 1 in 100
IPv4 Space is Getting Low – Really Low
Win one of 50 CCNP training books, videos and Cert Kits
Win great stuff from Cisco SubnetCisco Alert newsletter.Like RSS readers? Subscribe to the Cisco Subnet RSS feedLike e-mail? Subscribe to the
Follow all Cisco Subnet bloggers on Twitter.Follow Jim Duffy on Twitter
