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Cisco Systems, Inc. (CSCO)

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  • Dec. 14, 2012, 12:40 PM
    Juniper (JNPR +2.9%) has rallied two days in a row since announcing its $176M purchase of software-defined networking (SDN) startup Contrail Systems (I, II). Light Reading thinks Contrail could be working on a genuine open standards-based SDN controller, something very different from the semi-proprietary solutions of Cisco and VMWare/Nicira. Stifel notes Cisco's (CSCO) plans for its OPEN SDN architecture involve selling proprietary software for its switches - thus, SDN appears a means to its goal of doubling software sales over the next 5 years.
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  • Dec. 12, 2012, 7:17 PM
    Juniper (JNPR) acquisition target Contrail Systems has test customers for a network virtualization solution that can manage existing Cisco and Juniper gear, notes GigaOm. The idea is to deliver a software-defined networking solution that won't require big changes to existing enterprise networks, while still providing the technology's hardware management and programmability benefits. Cisco (CSCO) acquisition target Cariden is looking to do something similar, but for carrier networks.
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  • Dec. 12, 2012, 6:25 PM
    BofA Merrill Lynch's 1,600 year-end target for the S&P in 2013 is one of the most optimistic on Wall Street. Its 10 favorite stocks for the new year: F, WMT, VLO, C, LLY, MMM, CSCO, MOS, CTL and NU. It's worth noting that BAML's list from last year has returned 18% YTD so far.
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  • Dec. 12, 2012, 4:33 PM
    Like many of its peers, Juniper (JNPR) is betting big on software-defined networking (SDN): the company is issuing 5.82M shares and $57.5M in cash to buy the shares of SDN startup Contrail Systems it doesn't already own; the total valuation is $176M. Contrail, which recently snagged the CTO of Juniper's JUNOS OS, has been in stealth mode, though its blog posts suggest it might be working on an SDN software controller that will compete with VMware's (VMW) Nicira unit, seen as a threat to Cisco and Juniper's hardware margins.
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  • Dec. 12, 2012, 2:47 PM
    Apple, Qualcomm, Cisco, Allot, F5, Skyworks, and Avago are among the names Merrill expects to benefit as adoption of 4G services (much lower internationally than in the U.S.) takes off. Qualcomm benefits from higher device royalties and sales of relatively costly 4G baseband chips; Cisco from demand for its ASR9000 edge routers to aggregate 4G data traffic; and F5 from demand for networking gear that can "understand traffic details at a very granular level." Skyworks and Avago are seen having stronger 4G positions than rivals TriQuint and RF Micro.
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  • Dec. 12, 2012, 1:21 PM
    Hungry to grow its networking business (one of its few bright spots) at Cisco's expense, H-P (HPQ) has taken the risk of launching a pay-as-you-go option for enterprises. H-P will provide networking gear to service providers at no up-front cost; the SPs will then strike managed services deals with enterprises; and H-P will get paid based on the number of ports activated. Swisscom has signed up to offer the service, which is similar to a subscription service offered by Brocade (BRCD).
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  • Dec. 10, 2012, 2:04 PM
    Cisco (CSCO +2.6%) is rallying as analysts give a thumbs-up to its analyst day. Goldman is pleased with Cisco's 3-5-year opex guidance, and argues software-defined networking is "an incremental software revenue opportunity rather than a threat," though others feel differently. Raymond James expects services growth to prop up Cisco's margins, and thinks its routing margin pressures (stemming partly from carrier adoption of router bypass tech) indicate "an under-appreciated headwind" for rival Juniper (JNPR).
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  • Dec. 10, 2012, 2:08 AM
    Cable infrastructure vendor Arris (ARRS) and U.K. set-top box maker Pace have "made the most compelling bids" for Motorola Mobility's (GOOG) set-top/cable infra unit, Bloomberg reports. A complex financing structure in which Google maintains equity and patents might prevent a deal from closing this year. P-E firms are said to be uninterested in the unit, which has to contend with an industry shift towards cloud-based apps, and potentially costly litigation with TiVo. Cisco's (CSCO) cable unit could benefit from any turmoil related to the sale. (previous)
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  • Dec. 7, 2012, 11:50 AM
    Cisco (CSCO -1.2%) mentions during its analyst day it expects long-term growth of 5%-7% - that modest target, the result of slow switch/router growth, explains Cisco's aggressive efforts to return cash. Total gross margin is seen holding steady, even though Cisco wants to double software sales over the next 5 years and forecasts a 9%-11% services CAGR. John Chambers says Cisco has gone too long without a major acquisition (NDS apparently doesn't count) - NetApp (NTAP) has been viewed as a possible target.
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  • Dec. 6, 2012, 1:58 PM
    Cisco (CSCO +1.3%) and Juniper (JNPR +3.9%) are higher, possibly aided by a Credit Suisse note downplaying the threat posed by software-defined networking (SDN) solutions, such as those offered by VMware's (VMW) Nicira.  CS notes most of the IT pros it spoke with at a conference were "simply trying to understand what is SDN," and argues Cisco has a "practical and flexible" SDN strategy (I, II, III). Others have suggested SDN fragmentation between controller standards pushed by Cisco, Nicira, and the OpenFlow camp are a problem. Cisco's analyst day is tomorrow.
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  • Dec. 4, 2012, 11:25 AM
    Some stats from Mary Meeker's 2012 Internet trends report: 1) China now has 538M Internet users (+10% Y/Y), though penetration is still only at 40%. It also has 270M smartphone subs; penetration (as a % of mobile subs) stands at 24%. 2) Globally, there are 1B smartphone subs, compared with 5B mobile subs. 3) Mobile data now makes up 13% of total Internet traffic. 3) Total mobile app/ad revenue is expected to hit $19B in 2013, up from $15B in 2012. 4) About 1.5B Wi-Fi devices and 2B Bluetooth devices will ship in 2012.
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  • Dec. 3, 2012, 6:55 PM
    The router and Ethernet switch markets, a.k.a. Cisco's (CSCO) meal ticket, respectively declined 0.2% and 4.4% in Q3, per IDC. Declining low-end switch sales more than offset a 10.7% Y/Y increase in 10-gig sales. Cisco's switch share fell 340 bps Y/Y to 62.2%, thanks to competition from H-P (9.3% share) and others.The lack of growth in the router and Ethernet switch markets, together with the leads held by F5, Riverbed, Fortinet, and others in faster-growing networking segments, is making it very tough for Cisco to return to double-digit growth. (Nomura)
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  • Dec. 1, 2012, 9:15 AM
    Some of Berenberg's 2013 tech predictions: 1) The R&D-intensive mobile chip market will see consolidation and possible exits, benefiting Qualcomm, Samsung, and MediaTek at the expense of rivals. 2) Samsung will rely on its own baseband chips, a negative for Qualcomm, Broadcom, and others. 3) Huawei will strike a reseller deal with IBM, which will threaten Cisco and Juniper's margins. 4) Apple will launch an iOS MacBook Air (questionable), a cheaper iPhone (less so), and the mythical Apple TV set. 5) Windows 8 and Windows Phone will disappoint.
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  • Nov. 30, 2012, 12:40 PM
    Cisco's (CSCO) acquisition of Cariden has a software-defined networking component to it, notes Light Reading's Craig Matsumoto. Cariden's software can manage and analyze the behavior of carrier networking gear from multiple vendors, and Cisco has said the purchase will complement its ONE platform for remotely controlling and programming Cisco hardware. Cisco insists Cariden will still support rival hardware.
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  • Nov. 29, 2012, 8:55 AM
    Cisco (CSCO) is acquiring Cariden Technologies, a provider of network management software for carriers, for $141M in cash + retention incentives. Cisco touts the capacity planning/optimization abilities of Cariden's software, which manages both routers and optical networking gear, and says it will complement its nLight platform for jointly provisioning both types of hardware. Cariden competes with OPNET (OPNT), which is set to be acquired by Riverbed (RVBD). Cisco bought two other network management software firms earlier this year (I, II).
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  • Nov. 21, 2012, 12:39 PM
    Software-defined networking (SDN) may be a threat to Cisco and Juniper, but it's an opportunity for Broadcom (BRCM), since it could boost the usage of commodity switches running on Broadcom's network processors. The EE Times reports Broadcom  is working with app developers and two unnamed OEMs to create an API that would support both traditional networks and the popular OpenFlow SDN standard. During Broadcom's Q2 earnings call, CEO Scott McGregor claimed his company is "working with pretty much everybody in the SDN space."
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Company Description
Cisco Systems Inc is engaged in designing, manufacturing and selling of Internet Protocol (IP) based networking products and services related to the communications and information technology (IT) industry.