Mutually Assured Destruction: Cisco And HP Go To War, No One Will Win* (CSCO, HPQ)

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.

Thanks, as always, to everyone who helps contribute to the factual accuracy of SAI’s stories.

See Also
Cisco’s New Product Push: Low-Margin Servers?
Cisco Disaster: Time To Start Hoarding Cat Food

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