The weakness of the economic situation made Cisco feel more quot;Wolfquot; exploitation from competitors. In the global high-end router market, Juniper networks company gradually rob certain market share with technology advantage, HP network nibbled on a lot of Cisco’s market share in low-end users in the etheric switch fields, while Force10 focusing on enterprise-class routing and switching fields also brings a lot of pressure to Cisco in the data center market.
A survey report from Goldman Sachs shows that Ciscorsquo;s absolutely leading position is quietly decline in the traditional areas of routers and switches even if the market share of almost each category service it provided is increasing. For example, in the enterprise router market, Cisco’s market share dropped from 84% to 82%; while in the switch area, Cisco’s market share has declined slightly from 71.7% to 71.4%.
The decline of Ciscorsquo;s market share not only because of competitorsrsquo; low-cost, the gap between product performances is also a major aspect. To Force10 company as an example, despite its popularity in the industry is short of Cisco, but itrsquo;s in a leading position in power and cooling technology.
The relationship between Cisco and its traditional partners is also occurring subtle changes with the extension of Cisco feelers. To customers, they want to buy the industryrsquo;s best product, rather than quot;one stopquot; shopping. As a result, Dell, HP no longer would like to introduce customers to Cisco, and Oracle and other management software vendors are no longer willing to get too close to Cisco. A little bit of change will naturally be seen by customers, all aspects of the different reactions will occur one after another.
With challenges Cisco faced in Europe and America market bigger and bigger, the density of Chambers visiting to China deigned to increase last year. All signs show that Cisco hopes to ensure its global revenuersquo;s growth by breaking through the Chinese market. But in China, less affected by global financial crisis, the market is not calm. Today in the Chinese and Asian markets, Cisco has couldnrsquo;t maintain absolutely leading position like a few years ago, Huawei, ZTE from China massively attack Asia, Africa and Europe market, leading to Ciscorsquo;s repeatedly frustration in external market.
All this show that Cisco will face more competitions no matter in traditional markets, or new markets being involved