HP and Cisco at War.
October 1st 2010 11:34
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It is the buzz of the tech world: HP may soon try selling networking technologies such as routers, those highly sophisticated networking gears that companies use to run its data center operations. The prospect of IT giant HP’s entering the already crowded multibillion dollar networking industry is intriguing but also has the potential to disappoint. Its stunning news, the IT Company thinks it can take on networking stalwart Cisco Systems selling networking gears. Five months after closing its blockbuster deal with 3Com-a massive $2.7 Billion, HP is announcing that it has purged Cisco networking gear from all six of its data centers and is operating with only HP products. War is coming in tech world: Cisco vs. HP. It’s a move that sent a shockwave through the tech industry. This isn’t an ordinary business adventure or experiments; it’s a show of force by company like HP that increasingly confronting competition. Its making a deep plunge into networking industry this means war with Cisco, networking is Cisco’s are of expertise. The 3Com acquisition is a strong indication that HP has interest in networking space and preparing to challenge Cisco in networking space, 3Com is a major player in the networking industry, and its one of Cisco’s major competitor. The deal with 3Com will give HP the resources needed to take on Cisco in the networking space. HP has succeeded in big iron computing and IT services, so it thinks it knows what the tech world wants. The disintegrating relationship between former friends Cisco and HP continued when in Sept. 27 announced they have eliminated Cisco core routers and switches from their 6 data centers and replace it with all HP networking gear from its ProCurve business and the technology acquired when HP snatched up 3Com for $2.7B in a deal that closed in April.
The strong relationship between the two began deteriorating last year, when Cisco moved to expand its presence in the data centers; it goes beyond its networking roots through partnerships with other vendors. Back in May 2009 Cisco made stunning news when it’s introduced its own UCS-unified Computing system, an all in one data center solutions that includes Cisco servers and networking technologies as well as storage, virtualization and network management software. What makes Cisco enter the server and data center space? Cisco needs growth product, orders sank 20%. Budgets are tight, the company needs to d something, and one good way to deliver the growth shareholder demand is to steal some business from the server guys like HP, Dell, and IBM. Cisco has no choice but to try new things like moving into server and data center space. Cisco, with more than $23B in annual sales is seeing cash strapped customers delay purchases by squeezing productivity out of existing equipment. Cisco decided to take the plunge, Cisco’s moves into server and data center space means Cisco, for years a nonthreatening provider of “plumbing” for corporate networks, will find itself waging wars with companies it once considered partners like HP, and IBM. Before HP do sell or install Cisco equipments as part of their IT services operations. Data center solutions are one of Cisco’s priorities, along with globalization, video growth, customer relationships, and web 2.0. with its strong position among corporate information technology area-Cisco Systems has 61% of the router market- the company surely will be able to get an audiences for its servers and data center solutions (UCS). But if the networking company aims to beat HP on their home court (data center space), Cisco is going to have serve up something truly groundbreaking.
These tech titans are spreading out into each territory in very real ways. Cisco’s aim is to virtualize and provides a complete networking solutions, Cisco will also provides software that can manage real servers and virtual one at the same time and then the victual storages and network connections (Cisco’s specialty). It was another shot in the ongoing competition between two tech superpowers: HP and Cisco Systems. HP and Cisco are both vying for a piece of the burgeoning datacenter solutions market (that will also include the networking gear). The battle is on between two titans; HP vs. Cisco. HP will not playing a “sitting duck” here (they will not! I’m assure you) it will launch a massive retaliatory strike aimed toward Cisco, and then Cisco will respond. We are now witnessing a series of attack and counterattack from both companies. HP has already scramble to action, HP manned its battle stations and answered Cisco’s challenge, HP announced their interest in buying networking company 3Com (Cisco’s main rival), with the acquisition, HP is getting a much needed core data center technologies and talents, this could be used in its war with Cisco. HP is hoping that the 3Com acquisition will jump start it own efforts to catch up with Cisco in networking space. HP is expanding beyond IT services (HP’s main turf), taking on Cisco’s entrenched war machine networking space.
These past few months we have witnessed HP’s aggressive move, it has launched a massive acquisition campaign, scooping up companies in order to add the range of software, services and technologies its expanded market would need. HP has never been shy about paying for outside talent when it makes strategic sense. 3com technologies could marry well with HP’s own ProCurve portfolio, it’s a match made in heaven, this will give HP a strong foothold in the networking space and makes a credible challenges to rival like Cisco systems. But Cisco thinks that it has a better products, better vision and the networking titan is preparing a battle plan, the two companies are heading for a collision course. Who will win? We have no idea where this war heading.
For more see:
Netcrawl
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