Cisco’s Bittersweet Triumph
10/10/2005 -- From a Cisco enthusiast’s perspective, there’s a lot to like in market watcher Infonetics Research’s latest enterprise LAN switch study, which found that customers rated Cisco Systems Inc. tops in workgroup switching -- particularly with respect to financial stability, overall satisfaction and technology.
But the Infonetics study ("User Plans for LAN Switches: North American Vertical Markets 2005") also raised a question or two about Cisco’s LAN switching strategy. Because when it comes to the two very important metrics of cost and price/performance, users aren’t quite as satisfied, Infonetics says. In fact, Cisco trailed 3Com, Dell and HP ProCurve on both counts. That translates into a decline for Cisco from last year’s mark, and -- in almost any other market segment -- might also augur an impending decline in market share.
But not in the enterprise switching space.
"Despite the lower value ratings Cisco received in our survey this year, the truth is that organizations are reluctant to change vendors, and if they do, there has to be a very compelling case for doing so," said Infonetics analyst Matthias Machowinski in a statement. "Unlike in the router market, there doesn't appear to be a shake-up going on in the switch market. Vendors that make an organization’s short list are likely already installed in that network."
Elsewhere, survey respondents expected that their LAN switch expenditures would grow by 35 percent over the next two years. That’s good news for switch vendors -- and good news, as well, for the status quo. After all, respondents also reported that reputation -- considered overall and, increasingly, as it relates to security -- are leading selection criteria. (70 percent of respondents cited standards compliance as the most important criterion for choosing a LAN switch manufacturer.) Not surprisingly, Cisco leads the list of installed LAN switch vendors, followed by 3Com and ProCurve, then Nortel and Dell. -Stephen Swoyer
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