Gartner Research

Invest Implications: 'Cisco's ASIC-Based Cost Advantage Threatens to Disrupt the Data Center Switching Market'

Published: 03 June 2016

ID: G00310699

Analyst(s): Frank Marsala


Gartner estimates that Cisco has a cost-of-goods-sold advantage of 6% to 12%, which yields pricing/margin flexibility. In key accounts, competitors will see an increasingly aggressive Cisco, and we expect Cisco will also use its chips to differentiate on features.

Table Of Contents

Company Impact

Investment Implications

What to Watch

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.