Thread regarding Cisco Systems Inc. layoffs

VmWare is claiming their Nicira based unit will be a $1B runrate at the end of the year. Not bad for a software only product. Nice margins. http://fortune.com/2017/01/26/vmware-billion-dollar-business/

I'm holding my CSCO until just before the H1 results. I think once the markets see a consistent decline in revenue, they might start questioning why the ETL are paying $3.7bn for a company turning over barely $200m and making a $100m loss, instead of sorting out their core business.

I bought CSCO before the split.

Still holding on for dividend

Disappointing peformance

Cisco had to bring out the 9K to fend off Arista and the like, but all it's done is canabalise their N7K business and makes the switches commodity, as their is no unique hardware in them. No customer will switch their current N9k's from NXOS to ACI as it can't be done that way in the real world. They will need to buy a whole new fabric and then reutilise their current N9K's as spares or for growth. The thing is Cisco is fooling the market in to believing customer are buying ACI by linking it to the N9K numbers. They clearly aren't and I suspect most of the $89m was given away to customers in UCS/N9K deals to try to drive addoption. The DC BU was asking all AMs to give ACI bundles away with any DC deal over $100k at one point.

As for the share price, you can only judge it performance against the markets it's in. Although Cisco has grown over the last 2 years, it has been under the average growth of the Dow which means for the lay people, it is not performing well.

@quef the Cisco stock is 31$ not 22$

Can people be more accurate in this forum? Or just stop polluting relevant post with b...s..t?

We are, you just can't read. CPI inflation means $31 today buys what $22 bought in the year 2000, hence the next words in the sentence in year 2000 dollars so you can directly compare the purchasing power with the $82 stock price in the year 2000. Of today's price nearly 44% is cash on hand versus around 1% at the peak in 2000, so the real value of the ongoing business is closer to $12 a share in year 2000 dollars or a bit over $17 in today's dollars.

Add to this the revolving door of outstanding stock where they keep buying back stock only to reissue most of it to insiders and the tens of billions they've spent on acquisitions in the past few years which has yielded nearly flat revenues and you don't have a picture of a company poised for real growth. $89M of revenue for their SDN strategy after a decade of dabbling with SDN in house only adds to this view.

And the remaining 90% of sales are because Cisco is pushing the N9k in favor of other switches and every new switch is labeled "N9k" now. The customers will learn they got standard hardware with older NX-OS software.

I'm impressed how Cisco can play these games

And Business Insider is nothing but click bait crap.

@quef the Cisco stock is 31$ not 22$

Can people be more accurate in this forum? Or just stop polluting relevant post with b...s..t?

The stock market does not see it the same way...

The stock market thought the company was worth $82 a share in year 2000 dollars, and then it didn't. Today it's worth around $22 a share in year 2000 dollars and a significant part of that is now cash on hand.

Speaking of Brad Reese - What's up with his blog these days.

As I understand it from the various bits in his blogs he decided to focus on his family's legacy after a bout with cancer. People on his blog pointed to this website as a logical successor for the Cisco commentary.

The stock market does not see it the same way...

Who's wrong?

Speaking of Brad Reese - What's up with his blog these days. No more commenting on the goings-on at Cisco. Did Cisco shut him down somehow? His blog used to be an excellent place to find out what was going on within Cisco. (Off topic, I know but I think other people might also be interested)

Watch, our leadership will start moving things around so it is impossible to discern. Hey, according to Brad Reese at least cronies and their kids made big coin.

How about Security and Collaboration?