Cisco

Poll: What's behind Cisco's disappointing sales forecast?

Cisco had an unusually disappointing sales forecast this week and analysts are debating what it means. Take our poll and let us know if your organization is planning Cisco purchases. What do you think is behind the poor outlook?

Stocks took a tumble this week when blue-chip tech company Cisco Systems offered a dour forecast for its equipment sales, which it blamed on declines in government spending and slow demand from cable companies. Analysts have been debating what this means to other technology vendors, while others question if it is industry-specific or more company-specific.

What do you think is behind these numbers? Is it really the sign of an overall poor economy, or is there a shift in opinion about Cisco's value? Take the poll and let us know if your organization is planning any Cisco purchases.

Are its products and services overpriced? Do you think there has been a change in quality? Or is there now more serious competition? Let us know in the comments section below.

About

Selena has been at TechRepublic since 2002. She is currently a Senior Editor with a background in technical writing, editing, and research. She edits Data Center, Linux and Open Source, Apple in the Enterprise, The Enterprise Cloud, Web Designer, and...

7 comments
ybukhamseen
ybukhamseen

I think they are overpriced and Cisco should consider their pricing strategy as competition from HP is really fierce and overlapping especially with enterprises who are dealing with both HP and Cisco.

captron1955
captron1955

Cisco switches are overpriced for what is needed in many situations. Don't need allot of features in a wiring closet. Just need the packets to move quickly and there are several companies that can provide equipment that meets the requirements at half the cost

md.siddiq.panja
md.siddiq.panja

I think the quality and reliability of Cisco products is far better than the competition but even than the price is still a factor. I've seen many of my clients initially deciding to buy cisco and when they come to know about cost of ownership, they just go with cheaper option. We understand that quality is best but it should not be priced 10 times higher than the competition. I think Cisco had this coming.

mwclarke1
mwclarke1

Companies are watching the bottom line more closely and not spending as much over all in IT as the economy issues loom. I think many companies, like Cisco, have tried to depend on an every fast paced growing economy without any expectations of a decline and got caught off guard when the economy tanked, Car companies were one of the worse having way too much inventory at one time and way too much manufacturing capability than in years past, all for better returns for shareholders, yeah, now where are those great returns, in the form of cutbacks on jobs and spending to make up for it. Anyway, I think many in IT will look more at other products when faced with needing to do more with less. Cisco is costly, not necessarily the best of breed either. There have been way better solutions but some other companies have been on the downside of bad management and faltered, what a shame as we are loosing a competitive edge in some areas of technology. Of course some of the blame can be on a generation of people that have not had the chance to hone their technological skills like I had been able to do years ago (30 now) growing with all the technological breakthroughs and engineering development that was going on and was able to excel my skills in a multitude of technologies, engineering and innovation. Now many people entering this field are not exposed to as much of a broad scope of innovation, engineering and technology, are becoming very stymied in specific technologies and not very deep in the age of certifications and work silos. I have seen many IT so called engineers these days work their way up from help desk to desktop support to windows admin and even to being an engineer or even architect when only can barley run setup.exe from a disk install!1 and then the only OS in the world is windows! Same for networking, if grow up learning Cisco, then always as Cisco person, nothing can go wrong with Cisco, yeah right! Now don't get me wrong, I use a lot of Cisco products, when needed, when money is not tight. But I am not closed to the idea and do sometimes use other equipment. Same mentality can only choose a network tool if sold all in one box as a complete system and can call a vendor for every question needed, costs more than a 100,000 or must not be any good. Any network engineer (that can be called that) worth their weight can install any free network tool out there and run circles around any commercial product. As also being a systems, and network (also security) architect these days, I had to learn many things back when there were no classes or certifications, learned from other bright engineers and spending a lot of time studying the technology on my own not just trying to memorize questions and answers to some cert exam. I get tired of someone who knows one side of a technology refuses to acknowledge other technologies that will work and sometimes can be better. Many people work with Cisco, maybe have routers installed first, think only Cisco will work for everything else, not true. If managing a few windows servers, then forget UNIX/Linux, that would be taboo, I think the truth about all that, is not enough experience in the technologies, scared to go beyond the box, or in some cases I know of, just too lazy to do anything else and not doing any more than have to for my paycheck attitude. IF someone truly can understand the why behind the technology, not just the how, then would not matter what OS to a system engineer, or routers, or switches, or firewalls, database, etc. I only know oracle, I don't know SQL or DB2 and will need tons of hours training attitude is really pissing me off these days. Sorry for the rant, off my soapbox now.

mswanson
mswanson

Cisco is not the best performing gear and it's just too expensive to justify in todays cut costs world.

pizza7
pizza7

I have been noticing quality sliding. I was just looking at some Wireless N WAPs and considered Cisco gear first. The Small to Medium business gear is riddled with negative comments in the forums of frequent unexplained reboots and failures. May be the high-end stuff is performing better but I can't afford it. I settled on a Airport Extreme for $160.

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