Cisco (CSCO) and HP (HPQ) used to play so nicely together: As enterprises geared up their data centres, they needed both networking equipment and servers, and the two companies passed each other business.
Then Cisco ruined everything by announcing a new business push into servers — long HP’s turf.
Now HP’s pushing back: Yesterday in Palo Alto, HP announced a new line of network switching devices called “ProCurve,” directly competing against Cisco’s core business.
ProCurve has reportedly been in development for over a year been ramping over the past year, ever since HP acquired EDS. So it’s hard to say who really threw the first punch.
But it’s easy to predict the winner: No one. Both Cisco and HP are in a mad dash for new products because both companies are fighting low margins in relatively mature markets. Where ever growth is to be found, it’s not in the space ex-partners are desperately trying to get out of.
UPDATE: As our helpful commenters point out, ProCurve has been around for years. But the rivalry between Cisco and HP certainly is heating up, which is bad for both companies.
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