Cloud Computing increases the risk of technological disruption. The game is changing and the brand new idea will prevail as everything changes.
Cloud computing may concentrate the purchasing power of the few that become the oligopoly. Cisco will experience price compression at best and market share loss to boot.
Cisco has had virtually no serious competition in layer 2 and 3 switches. New technology is arriving. Margins are shrinking. Long-term industry structure is very uncertain.
Cisco is now a big uncertain bet. It no longer is the dominant can’t miss giant that everyone pays homage to.
George Gutowski writes from a caveat emptor perspective.