Cisco Will Rise Sharply On Transition In 2013
By ValueMax:Cisco (CSCO) often feels like a one trick pony. It trumpets networking and has done it well for many years now. However, being so invested in one market is problematic when you fail to see a major change or opportunity coming. This is exactly what happened to Cisco. It did not adapt to the rapid growth of data centers and is now playing catch up. This will bring mixed results.Cisco, with its heavy reliance on mergers and acquisitions, is looking to acquire its way back to prominence in the market. It recently invested $100 million in a networking start-up called Insieme. Cisco is using a spin-in to acquire Insieme, meaning Cisco invests $100 million today, with the option of purchasing the company at a later date for up to $750 million. By doing this, Cisco eliminates the chance that Insieme with directly compete against it in a market itComplete Story »
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