Feeds

Cisco beefs up storage play, cosies up to Veritas

Spreading wings

  • alert
  • submit to reddit

Application security programs and practises

Check out The Register's Enterprise Storage Channel

Cisco has alighted upon data storage as a growth area for the company. In August it bought Andiamo, a storage networking company, for an undisclosed sum. This will mark its entry into the Fibre Channel SAN (storage area networking) switching market

And yesterday, CEO John Chambers told a Gartner conference, ITExpo, that the firm would work with "three or four partners as it moves into enterprise storage, with Veritas probably on the list".

Veritas is a given: without this partnership, it's hard to see how Cisco could tell a credible storage software story. And Cisco's move into data storage is equally a given, on three counts:

  • Enterprise storage commands the same sort of outrageous premiums that Cisco charges for its networking products.
  • The customers do not appear to mind paying outrageous premiums - at least not in public. According to Cisco CEO John Chambers 91 per cent of customers think that its prices are fair. Also he points out that price does not figure in the top three purchasing reasons cited by Cisco customers, CRN reports.
  • Cisco commands a price premium because, historically, its data networking products are more reliable than the those of the competition. Inevitably, this premium will fall. The data networking market is not ex-growth, but there has been an almighty pause, with customers stopping spending, and the broker channels awash with kit from bust dotcoms.

The enterprise storage business has seen price-slashing and job cutbacks in recent quarters. However this sector is still growing and industry margins will fall more slowly than in data networking.

The market leader, EMC, last week announced a reduction of headcount of 1,750, but then it has so much more fat to cut than the rest. In Enterprise Storage, EMC occupies the same kind of market-leading, price-premium-commanding, fat cat role that Cisco occupies in data networking. Cisco may quickly populate a few profitable product niches but it is unlikely that it will ever assume a top dog position in the storage market. ®

Related stories

Cisco goes storage with Andiamo buy
'Brutal' Q3 sees EMC lay-off 1,750
Enterprise storage loses profit momentum
Fired! Veritas CFO lies on CV

Check out The Register's Enterprise Storage Channel

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.