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Cisco (CSCO) has spun off and provided $100M in funding for Insieme, a project to create...
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Thursday, April 19, 2012, 6:11 PM ETCisco (CSCO) has spun off and provided $100M in funding for Insieme, a project to create switches based on software-defined networking (SDN). In an employee memo, Cisco says it retains the right to buy Insieme for up to $750M, and outlines its SDN strategy. Cisco faces a tricky balancing act: it needs to compete with the SDN solutions of upstarts, but has to avoid cannibalizing sales of its high-margin, proprietary gear.
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KO himself couldn't go to the Board and explain why the volume of 28% servers were better than the 75%+ margins of fewer-sold minicomputers...
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Sic transit Gloria!