NEW YORK (
(HPQ - Get Report)
has taken another swipe at
(CSCO - Get Report)
, as the former partners
continue to slug it out
in the server and networking ring.
Relations between the two companies started to deteriorate when
Cisco entered the server market
last year, a move that HP says is starting to backfire.
"They picked a battle that they can't win, because running a data center is very different to running a network," David Gee, HP's vice president of worldwide marketing, told
. HP, he added, offers a "three-legged stool" of technology containing networking, storage and server compute power, whereas Cisco's expertise is mainly in networking.
"It's pretty hard to sit on a one-legged stool," he quipped.
Cisco, which first
stepped on HP's toes
in 2009 when it launched its UCS server product, didn't have the smoothest summer. The Silicon Valley heavyweight gave
tepid second-quarter guidance
and CEO John Chambers famously noted that Cisco hit some
in IT spending.
HP claims that it is adding to Cisco's problems. "I think that those 'air pockets' are being certainly fueled by the combination of HP's networking business with 3Com," said Gee. "We're giving them a run for their money on performance and the geographic footprint that 3Com can get to."
HP splashed out
on switch maker 3Com last year in a move that
was seen as a major challenge to Cisco
, particularly in the lucrative Chinese market. 3Com's H3C subsidiary is a major player in China, which is in the
midst of an economic and technology explosion
, HP also ramped up its ProCurve networking technology, bolstering its network security story
by acquiring ArcSight
During its recent fiscal fourth-quarter, HP's ProCurve business grew 50% compared to the prior year's quarter. Including the 3Com acquisition, the company's networking revenue grew 227% over the same period.
"At this point, it seems that HP is gaining some market share in the networking business," Kaushik Roy, an analyst at Wedbush, wrote in a recent note. He added that the 3Com products are still sold mainly in Asia. "As HP puts more emphasis on selling 3Com in the US, we believe HP will gain more share in networking."