Cisco made a massive strategic blunder in the last decade, aggressively moving into consumer devices rather than focusing on their core enterprise and service provider markets. It seems that Cisco is now in the process of rectifying this mistake, but charting a path to growth is an entirely different matter!
After years spent focusing on personal technology, businesses are increasingly turning back to the enterprise. The corporate IT market is much more dynamic and competitive, with a few very large “superpower” companies discovering their power to drive purchasing decisions. If a supplier can create an integrated “stack” of hardware and software, they can push product purchases that might otherwise be overlooked or postponed. This is the main reason that enterprise IT acquisitions work so well: Where a small company must fight to sell their product, a large one can hitch it to a much more strategic sale and have it pulled along.