CEO John Chambers has made some bold statements in the press recently about Cisco's (CSCO) plan to disrupt the traditional wireless infrastructure market, which is currently primarily served by Alcatel-Lucent (ALU), Ericsson (ERIC), Huawei, and Nokia Solutions and Networks (NOK).
Cisco claims to have funded a start-up as part of this disruptive plan. I believe Cisco aims to disrupt this market via Cloud-Radio Access Network (C-RAN) technology using new software programmable processors (likely developed by the start-up it is funding). Such an entry would complement Cisco's wireless offerings in Enterprise WiFi, Small Cells and Self Optimizing Networks (SON) and, if successful, open up another multi-billion dollar market for the company. In addition, C-RAN also fits with the Software Defined Networking (SDN) model, which is an area Cisco is aggressively pursuing. As for my view on Cisco's stock, I find the current risk/reward favorable. CSCO.
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