Faced with four straight quarters of falling sales Cisco
Systems Chief Executive Officer John Chambers, says that he wants to expand
beyond networking equipment into computer servers.
Chambers said revenue this quarter will fall at least 15
percent. To reach his target for annual sales growth of as much as 17 percent,
Cisco is pushing into the market for computers used in corporate data centres,
where it faces a war with its partner IBM and rival HP.
Demand for Cisco’s routers and switches has gone belly up
as Google and Microsoft responded to the recession by cutting back on gear for
data centres, the rooms of computers that store information and run Web sites.
To counter that slowdown, Cisco last month began selling
its Unified Computing System, a combination of computer servers, storage
devices and networking gear. By pushing into data centres they can go to existing customers
and they are betting their good name can transfer into other areas.
Published in
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Cisco wants to get into servers
IBM and HP face off