Boston, MA 11/11/2013 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) has seen how its rivals are taking Software Defined Networking (SDN) serious and it’s also seeking to increase foothold in the segment. From initially holding 85% stake in Insieme, the SDN startup, the company has now purchased the remainder stake. The business in high-end hardware networking where SDN is applicable is very promising and Cisco cannot just sit back and watch rivals have a field day. This is why Insieme is of particular importance to its raid in this market segment. Through this acquisition, the $126.59 billion capped company is hoping to alter the information technology landscape. As a result it’s seeing a multi-billion business opportunity and reliable financial savings platform. Cisco’s internet protocol-based products have wide usage in the internet infrastructure development and its customer base is not only wide, but also forms the list of who’s who in the internet networking sector. But its big presence alone cannot secure the future and earnings for investors, as such taking bold steps such as investing in startup tech firms to discover new talents and acquiring promising technologies always come as second nature for this San Jose-based company.
The company has assured its investors and customers of its potential to remain the leader in internet protocol-based equipment sector. It’s portfolio of tech acquisitions and technology pipeline are key areas which the company believes gives it the competitive edge in the otherwise red-hot industry. So could this be the time to add Cisco to investment position? A lot of factors validate investment in this stock as a promising investment.
If the company’s Chief Executive John Chambers is to be believed, the company is going to lead the reset of IT in the coming decade and this is largely due to its SDN investment following the takeover of Inseieme. So far, Cisco has acquired three technology startups.
In the Nov. 13, Q1.14 data, the company is expected to earn 41 cents a share on $12.36 billion revenue. Its earning in the year-earlier quarter was 39 cents on $11.88 billion.
