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Is Cisco's decision to sell their blade server line, a good business move?
HP dominates 54.8% of the blade server market and IBM 21.7%
As Cisco pushes deeper into HP turf, HP said it will invest more money into network gear that competes with Cisco.
Cisco sees an opportunty to sell more products and grab a bigger chunk of the datacenters?
Is the blade server line going to be popular? Will large datacenters use the Cisco blade server line verses HP or IBM?
As Cisco pushes deeper into HP turf, HP said it will invest more money into network gear that competes with Cisco.
Cisco sees an opportunty to sell more products and grab a bigger chunk of the datacenters?
Is the blade server line going to be popular? Will large datacenters use the Cisco blade server line verses HP or IBM?
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It's an absolutely genius move. There's a huge amount of mark-up that's tolerated in server products (by consumers), mainly because of the integration of the server with monitoring software, etc. If Cisco can introduce a whole new concept into the datacenter, servers that are tightly integrated with routing, they'll create a whole new market which they will dominate.
Of course, HP got wind of this before the product was announced and is already pounding Cisco with their integrated offering. So the HP offering might actually hurt Cisco more than the Cisco offering helps.
Swim with the sharks, and you'll eventually get eaten.
Of course, HP got wind of this before the product was announced and is already pounding Cisco with their integrated offering. So the HP offering might actually hurt Cisco more than the Cisco offering helps.
Swim with the sharks, and you'll eventually get eaten.
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I agree, Cisco should profit from the strategy. The consumer will be the big winner with another blade server option and more competition to reduce prices.
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