Cisco Systems took a big bet more than four years ago when it jumped into the server market with its Unified Computing System blade and rack servers and started peddling converged Nexus switches at the same time. Those bets have paid off, and rising sales of these products are filling in the revenue gaps in the quarter ended in …
Hopefully they see the writing on the wall..
With switches and routers becoming increasingly commoditized (even servers to a certain extent), they need to focus on network management, configuration, fabrics, SDN, services...things that manage networks rather than run them. I think they'll be in switching and routing for the foreseeable future, but they can no longer rely on it as their primary revenue generator. Likely, they'll move to the high end and leave the rest of the market to the commodity players.
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