Cisco: Skepticism Abounds About Foray into Servers

Seems the more the Street thinks about Cisco Systems’s (CSCO) announcement Monday that it will sell servers, the less the Street is inclined to be enthusiastic. As I noted Monday, Cisco is expected to lose current revenue from partners Hewlett-Packard (HPQ) and IBM (IBM) as it comes into deep competition with both. And the effort Cisco will need to make to actually be successful in selling a server against both vendors seems somewhat formidable–however enthusiastic Cisco is about its server, dubbed the “Universal Computing System,” or UCS.

JP Morgan’s Ehud Gelblum sounds the most skeptical of the lot. His colleague Mark Moskowitz, who covers HP and IBM, today put out a note saying that it’s going to be pretty tough for Cisco to put together the necessary software and services to match the top vendors of servers. Gelblum agrees, but he’s more interested in what seems to be a rather skimpy return even if Cisco does succeed.

Read the rest of this post

Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »