Cisco Systems, Inc (NASDAQ:CSCO) – Banking on the “Cloud” burst
Cisco Systems, Inc (NASDAQ:CSCO) is a big player in the networking industry. Over the past one year, this industry has been rough weather. Any investor who has been following this particular market will know that there are some distinct trends. The dependency on the government has grown immensely, the pricing war has been nothing less than brutal, and there has been some enterprise and telecom spending. Apart from all of this the one big theory that stands tall is that the leaner the business the better it will fare. Though larger companies like Cisco have been able to move through unscathed, smaller companies haven’t fared too well.
They offer a variety of products, such as routers, switches, wireless LAN equipment, network security equipment and application delivery controllers, in a bid to outdo each other. This is because pricing power and relative size are two factors that make it very easy for bigger companies such as CSCO to quell the competition.
Demand for cloud computing
Over the past two years, the cloud market has literally exploded and analysts project that the future also holds immense growth possibilities for it. What is also expected is that by 2015, 50% of all CIOs will in most probability be managing a large part of their infrastructure and applications via the cloud. The global spending on various public cloud services is expected to touch over $200 billion.
Accommodating new businesses
Cisco has been designing its cloud computing services and programs in such as manner that it will enable its partners to latch onto opportunities in the cloud computing space where they can act as Cloud Providers, Cloud Builders and Cloud Services Resellers. The company had said this in 2011 and reiterates that every Cisco partner has the opportunity to participate in cloud, and that every one of the businesses is operating in zones that are best suited to them. The partners gain support from a steady and sturdy company and Cisco Systems, Inc (NASDAQ:CSCO) gains the reach that the smaller companies provide.