This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Don't Bet Against Cisco

Cisco's (CSCO - Get Report) days as the server industry's collaborator-in-chief may be over, much to the annoyance of Hewlett-Packard (HPQ - Get Report), but the networking giant has good reasons for going its own way.

After months of rumor and speculation, Cisco entered the server market earlier this year, a move that placed it in direct competition with long-term partners H-P and IBM (IBM - Get Report).

The tremors from the launch of Cisco's UCS technology are still being felt, and have prompted a frenzy of activity from the likes of H-P. This week, for example, the server giant teamed up with Alcatel-Lucent (ALU - Get Report) to target the telecom sector, effectively attacking Cisco in its own back yard.

Like a jilted lover, H-P has been telling anyone willing to listen about Cisco's alleged shortcomings, and was quick to launch its UCS rival, the BladeSystem Matrix.

H-P, of course, also has its own ProCurve networking technology to push, and a picture is emerging of Cisco fending off multiple challengers. There has even been speculation that IBM may join forces with networking specialist Juniper (JNPR - Get Report) to attack Cisco.

Two other Cisco rivals, 3Com (COMS) and Voltaire (VOLT) are also attempting to squeeze the networking giant while it targets the server market.

Despite turning old friends into new enemies, however, Cisco remains a networking behemoth, with the sort of muscle that most tech firms could only dream of. The San Jose, Calif.-based firm exited its recent third quarter with cash, cash equivalents and investments totaling $33.6 billion, and has been working hard to control its costs.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ALU $3.78 0.00%
CSCO $27.91 0.00%
HPQ $29.18 0.00%
IBM $152.28 0.00%
JNPR $29.80 0.00%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs