In 2009, Cisco launched their server range with fanfare and advocated their managed service play to their customers. It was considered by many of Cisco partner as Cisco effort to encroach into their customer base and initiated realignment of reseller approach by Cisco partners. It also initiated Hewlett Packard to acquire 3Com to strengthen their networking offering to mitigate any potential loss of business to Cisco. Broadcom, Juniper was the major beneficiary as IBM and others pushed their routing product. Analyst feared that Cisco entry into Server market is going to have more than $ 1 Bn potential revenue lost as major server player’ used to sell Cisco routing product. Unperturbed by partner turned into foe, Cisco slowly started market moves with performance oriented server certified to work across cross vendor network equipment. In lasted quarterly server market share report by Gartner, Cisco market share reached to 2.3% with more than 50k server movement during Q1, FY13.Cisco increased its global server shipment share from Q1, FY12 level of 1.7%. For the last few quarter, cisco is beating street revenue and earnings projections. According to IDC, Cisco generated $450 Mn Server revenue during Q1, FY13. I believe that in next one year Cisco may upset major server player’s to increase its market, shipment and revenue share of server market.
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