Cisco Targets a Billion Dollar Business

Storage networking could generate annual sales of $1.4 billion for Cisco Systems Inc. (Nasdaq: CSCO) by the year 2004, according to a report published on Byte and Switch, a new Website launched today by Light Reading.

The figure of $1.4 billion is equivalent to about 6 percent of Cisco's most recent annual revenues of $23.7 billion and is deduced from market forecasts and statements made by Marc Cree, general manager of Cisco’s Storage Router Business Unit.

Specifically, Cree says that Cisco expects to gain a 20 to 28 percent share of any new market that it enters, and a bunch of market research firms project the storage network equipment market to be worth $4 billion to $5 billion by 2004. Twenty eight percent of $5 billion is $1.4 billion. (Arithmetic is our friend!)

The report, called All Eyes on Cisco, goes on to analyse Cisco's prospects of achieving this goal. It suggests that Cisco may not be able to pursue its normal method of breaking into new markets, via acquisitions. It also weighs up the competition (which is formidable) and examines Cisco's investments in stealthy storage networking startups.

— Peter Heywood, Founding Editor, Light Reading
wdog 12/4/2012 | 8:14:08 PM
re: Cisco Targets a Billion Dollar Business What happens when Cisco doesn't get 20-28%. Are they going to drop out of the market and declare that it doesn't exist like they have in long haul and optical switching? It's going to be a hard lesson in reality for Cisco to learn that they have to compete like everybody else. Competitive products and solid execution wins, not just being Cisco.
photonic 12/4/2012 | 8:14:07 PM
re: Cisco Targets a Billion Dollar Business
I am really suspicous of these claims that various markets are multi-billion dollars in size. Are these estimates from the rosy 2000 or from gloomy 2001 analysis?
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