This eWEEK: April 14, 2003
Gibson: Cisco bears watching now that the company has regrouped.Cisco is no Enron. It hit a bump in the road a couple of years ago, but who didnt? The reason it seemed like such a comeuppance was that Ciscos accomplishments, both financially and technologically, had been so extraordinary to that point. Now that Cisco has gathered itself, networking competitors beware. If you listen to those competitors talk about it, they believe Cisco is vulnerable on price. Cisco CEO John Chambers responds to this charge in our eWeek Interview. My take: Chambers doesnt mind charging a premium as long as he can claim to deliver more value. Whether or not Cisco delivers that value is up to you, the customer. If not, make your views known. It sounds to me like Chambers will bring prices down if the market demands it.
Theres no need to read between the lines with regard to Chambers estimate of the storage networking market, however. Its big. This week, Cisco is enhancing its MDS 9000 Series switches and 7200 and 7400 Series storage routers with Fibre Channel-over-IP software to enable them to work over longer distances. See Evan Koblentzs coverage of Cisco, HP and QLogic announcements.