Original URL: http://www.theregister.co.uk/2002/10/08/cisco_beefs_up_storage_play/

Cisco beefs up storage play, cosies up to Veritas

Spreading wings

By Drew Cullen

Posted in Storage, 8th October 2002 11:47 GMT

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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:

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. ®

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Check out The Register's Enterprise Storage Channel