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Cisco’s move to restructure its Asian operations is a clear sign that the HP-3Com acquisition has lit a fire under the router king’s you know what. It’s also yet another vote of confidence in the Chinese technology market.
Cisco’s restructuring plan announced this week will involve the creation of a separate Greater China Theater that will include China P.R.C., Hong Kong and Taiwan, formerly all part of the Asia Pacific Theater. The remaining Asia Pacific countries will remain their own theater and Cisco’s Japan operations will continue to be its own theater.
Cisco must do whatever it takes in China to hold down core networking considering 3Com controls 32% of that market — a percentage that will jump once the HP-3Com acquisition is finalized. In fact, many speculated that the 3Com acquisition was solely a geographic move maneuvered by HP specifically to kick Cisco the one place it hurts.
On another note, Cisco and HP will hold partner summits on the same day in different cities — never mind the fact that the companies have tons of cross-certified partners. After all, the former friends were once known for their cross-selling incentives.
And so the Cisco-HP battle ratchets up.