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VMware's (VMW -0.6%) purchase of Nicira is a "significant negative" for Cisco (CSCO -5.9%) and...

  • Tuesday, July 24, 2012, 2:23 PM ET
    VMware's (VMW -0.6%) purchase of Nicira is a "significant negative" for Cisco (CSCO -5.9%) and Juniper (JNPR -1.2%), argues MKM. The firm notes Google (a big supporter of software-defined networking) has reportedly installed Nicira's software in its newest data center, and that Cisco generates $14B/year in switch sales at a ~60% gross margin. Other Nicira customers include AT&T, eBay, NTT, and (notably, given its cloud infrastructure presence) Rackspace. (earlier)
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    Long time high end storage sales, 35+ yrs. VMW knows what it is doing in this space and has insight as they develop next gen products. They know the timeline for the virtualizing of the network and the big data. The VCs are funding the storage cloud startups now and it is just a matter of time.
    I believe EMC recent management changes improve the skill set of VMW to move in this direction. Exciting times
    24 Jul 2012, 02:51 PM Reply Like
  •  
    Where are all the "analysts" and pundits claiming "CSCO will hit $30 this year..." or my favorite: "CSCO can hit $60 in 2015..." Of all their takeover mistakes, not trying for this company may be Cisco's biggest!
    24 Jul 2012, 11:21 PM Reply Like
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