When Cisco Systems
But none of them have pushed off from Cisco as violently as Hewlett-Packard
This announcement does a couple of things:
- Announces that an HP networking solution can replace the traditional Cisco or Juniper architectures.
- Advertises the HP networking portfolio to current Cisco customers.
- Makes it perfectly clear that Cisco is no friend of HP's anymore.
It's a way to get some value out of the 3Com acquisition, but hardly the end of Cisco. 3Com's annual revenue is only around $1.25 billion, about one-third the size of Juniper and a mere speck of dust next to Cisco's $40 billion haul.
Nevertheless, the move is part of a larger trend that Cisco walked into with eyes wide shut. I can appreciate the value of selling end-to-end computing solutions, which is what all of the big players are doing now. But I think the integration value here is easily overshadowed by the damage done to Cisco's long-standing industry partnerships, which used to be the one thing that made the company better than the others.
Can Cisco overcome this fatal error of judgment? I'm not so sure, but feel free to tell me how in the comments below.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Microsoft is a Motley Fool Inside Value recommendation. The Fool has written calls (bull call spread) on Cisco Systems. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of International Business Machines, Microsoft, and Oracle. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.