When a company has absolutely dominated a market for decades, you can be sure that it has some significant competitive advantages. That's certainly the case for networking hardware provider Cisco Systems (CSCO 0.37%). While the company's market share has eroded a bit over the years, Cisco remains the undisputed leader in its core markets.

Cisco controlled 43.3% of the Ethernet switch market by revenue in the first quarter, according to IDC, along with 35.1% of the combined service provider and enterprise router market. In both cases, Cisco's market share is at least triple that of the nearest competitor.

You don't need a lot of money to invest in Cisco stock. With shares trading right around $50, you can pick up a couple of shares for $100. Given the company's track record of dominating the networking hardware industry, Cisco is a stock to buy and hold for years.

What makes Cisco special?

An important thing to remember about any piece of equipment that goes into a data center, be it networking hardware, servers, CPUs, or anything else, is that the upfront cost is only part of the equation. Cisco's products are not the least expensive option, but once the total cost of ownership is considered, it makes sense that the company's customer base is loyal.

On top of the cost of buying and installing a switch or router, there's the cost of operating it over its lifespan, and the cost of dealing with any issues that come up. Something like 80% of total IT costs occurs after the initial purchase, according to Gartner.

A cheap piece of hardware that requires constant babysitting from IT staff is an expensive proposition in the long run. Cisco can charge more for its equipment because it delivers overall cost savings by reducing after-purchase spending. Every hour that an employee must spend fixing a hardware problem is money out the door.

A case study from Cisco subsidiary Meraki drives the point home, although these results should be taken with a grain of salt since they come directly from Cisco. In the case of a manufacturing customer, Cisco claims that its products required 525 fewer hours of employee time compared to competitors over a five-year span, resulting in an 87% reduction in the total cost of ownership.

Cisco has been around for nearly four decades, so this total cost of ownership advantage has a track record to back it up. Cisco's customers stick around for a reason.

A reasonable price and a solid dividend

Cisco's revenue and profit can be affected by the global economy. Economic uncertainty can lead customers to delay upgrades and pull back on orders, and that flows through to Cisco's top and bottom lines. Right now, despite a tough economic backdrop, Cisco is doing just fine. The company expects to grow revenue by about 10% this year while producing adjusted earnings per share of at least $3.80.

That earnings guidance puts Cisco's price-to-earnings ratio at just over 13. For a company as dominant as Cisco, that seems pessimistic. The company also pays a nice dividend that's been steadily growing over the years. Based on the most recent quarterly dividend payment of $0.39 per share, Cisco stock sports a dividend yield of 3.1%.

Cisco isn't the most exciting tech stock, but if you've got a little money to invest, the networking hardware juggernaut is a good option to buy and hold through the rest of this decade.