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Famous Cisco CCIE Emeritus predicts switch hardware price plunge of -70%

"An L2-Tree based network design does a brilliant job of transferring wealth from your company to a network vendor. The upfront capitalisation means you transfer your company profits to a supplier ahead of revenue or value extraction."

New York City:   Mon, 6/16/14 - 11:59pm    View comments
 

Update 6/26/2014 - 9:09pm

Please join us to hear about our new Program - SeedIT, which will help our partners SEED our Nexus 9000 switches into customer accounts. Switches sold through this program will be available to partners at up-to a 70% discount, but limited in quantities per customer.

Cisco summer yard sale - 70% off Nexus 9000
 

Update 6/19/2014 - 11:59pm

Cisco's own customers are now competing against Cisco
 

Famous CCIE Emeritus Greg Ferro and Cisco CEO John Chambers

 

Earlier today famous Cisco CCIE Emeritus Greg Ferro predicted:

"Networking equipment is expected to get cheaper over the next five years. The cost of silicon and increase in the manufacturing base through the arrival of whitebox Ethernet and merchant silicon means that costs of switch hardware are set to fall dramatically. Predictions vary but 30-70% savings over 5 years is a practical guess. Therefore, it is much better to spend less capital and take advantage of cheaper products in the years ahead. I'm suggesting that a $1MM dollar hardware purchase today is likely to $500K in 3 to 5 years. (Note that you probably won't save $500K, it will be spent on licenses for networking orchestration).

"An L2-Tree based network design does a brilliant job of transferring wealth from your company to a network vendor. The upfront capitalisation means you transfer your company profits to a supplier ahead of revenue or value extraction.

"Vendor maintenance on big switch chassis starts on day one, even when you use just one port. Over 5 years, vendor maintenance will exceed the cost of the purchase."

View the Worldwide Cisco CCIE Count.

More CCIE Water Cooler Gossip.

Related documents:

Infonetics Research: Ethernet switch market down -15% in the first quarter as growth stalls

Dell'Oro Group: Ethernet Switch Market Loses Close to $1 Billion in Revenue in First Quarter 2014

Related stories:

Cisco summer yard sale - 70% off Nexus 9000

Cisco's own customers are now competing against Cisco

Ethereal Mind: Switch Prices Will Get Cheaper. Design Models Will Change

Network World: Cisco Q1 slump drops Ethernet switch market
 


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