For more than a decade, Cisco Systems claimed it’s serious about the software market. Now, CIOs are finally listening to Cisco’s software claims. Here’s the proof — and the implications for Cisco’s channel partners.
First, the proof: Goldman Sachs recently asked CIOs which software companies would earn more of their IT budget over the next 12 months. Now for the twist: Cisco’s software portfolio was ranked No. 7 on a list of 10 vendors that would garner more software dollars from CIOs.
Hmmm. How did Cisco turn previous software disappointments into recent software victories? Acquiring WebEx and melding it with unified communications and TelePresence certainly helped. But the story doesn’t end there.
Cisco has also succeeded quite a bit in the open source market, despite a legal run-in involving the Free Software Foundation. One prime example: Cisco generated considerable buzz with a recent Linux-oriented developer contest.
This story has one more twist. Cisco’s unified communications and unified computing strategies essentially position the company head-on against Microsoft, Dell and Hewlett-Packard. Translation: Cisco is the new IBM, essentially competing across multiple hardware, software and services markets.
For VARs, it’s time to choose sides: Bet on Microsoft’s Windows Server-centric view of unified computing. Or ante up with Cisco’s network-centric view of unified computing. If you place your bets on Cisco, just be sure to study up on the company’s software strategy. Apparently, CIOs already have.
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Var Guy, you’ve spotted an important trend involving Cisco/software sales. But you didn’t raise an important question. Is Cisco any good at developing homegrown software rather than acquiring it?
Hello Frankie: The VAR Guy is going to play politician, duck that question, and direct it back out to his readers. Folks, is Cisco any good at software?
At Cisco our innovation strategy is to build, acquire and partner. So developing “homegrown” is and will be only one component.
My 2 cents: Well i dont think software is Cisco’s strong point at all. Just look at the GUI of their firewalls….
Lang: The VAR Guy appreciates your perspective. He looks forward to potentially seeing you in Paris at Cisco Velocity.
Nick: The VAR Guy must concede he isn’t much of a firewall GUI guy. But our resident blogger expects to keep a close eye on Cisco’s GUI efforts for the Flip video camera and other consumer software efforts…
Nick-
We aren’t perfect, but I think the VARGuy was attempting to show a trend. Our simple Flip camera user interface continues to be recognized industry wide. How about our Eos platform — http://www.cisco.com/web/solutions/cmsg/platform.html? How about our acquisition of Jabber and its IM and presence software, which is changing how people collaborate. Of course there is also Webex and The VARGuy’s personal favorite Telepresence that thanks to its software may be easier than a phone call.
We may not be perfect, but we are gaining CIO mind share and that is key for us and our channel partners.
Velocity = Wi!
Lang: You’re putting words in The VAR Guy’s mouth. Thankfully, they’re the right words. Your summary on The VAR Guy’s perspective is accurate.
Looking forward to sipping — and not spilling — Latte at Velocity.
Hi Lang, The VAR Guy,
Fair enough – And I must admit i have to complement you on the software of your new Cisco 500 series IP phones. We now support them from within our 3CX Phone System for Windows and the phone interface is very nice! The phones are sure to be a big hit!
Hey Nick: The VAR Guy certainly isn’t defending all Cisco software all the time. But our resident blogger sees progress… Thanks for reading.