Cisco Systems (CSCO - Get Report) may be expecting great things from its entry into the server market, but investors will also be weighing the impact on the networking giant's many partners and rivals.
The goal-posts are shifting in the tech sector, forcing Cisco to seek new business opportunities outside of its core networking niche. With almost $30 billion in cash and a vast installed base, Cisco has the muscle to force itself into a new market, prompting Goldman Sachs to add the company to its conviction buy list Tuesday.
H-P, which saw its overall storage and server revenue plunge 18% in its recent first-quarter results, is understandably nervous about protecting its blade business, which grew 4% year over year."Would you let a plumber build your house?" sniped an H-P spokesperson, in an email to TheStreet.com. "