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» VIEW ALL POSTS Jul 12 2011   3:24PM GMT

HP Networking: We are taking share from Cisco



Posted by: Shamus McGillicuddy
Tags:
Cisco
HP Networking
Networking

While Cisco Systems uses its annual customer show, Cisco Live, to showcase new products and features that it hopes will sustain its position in the networking industry, HP is touting recent market data that shows it gaining market share. HP says it’s gaining that share at Cisco’s expense.

Mike Banic, HP Networking’s vice president of marketing, told me today that HP is taking share from Cisco because of its architectural approach. Most notably, HP’s FlexNetwork architecture, which the company articulated at Interop Las Vegas. A key tenet of this architecture: Use beefy, feature rich core switches to flatten the network and eliminate the aggregation layer in both your data center and campus LAN, thus reducing capital outlays and operational expenses.

Banic said HP’s market share rose 2.5 points to 12% of revenue in the Layer 2/3 switching market, according to Dell’Oro’s market research. Banic claims this gain came at Cisco’s expense. Cisco’s shared declined to 68.2% from 73.1% a year ago. Banic also highlighted that HP enjoyed modest gains in both the wireless LAN and the enterprise routing markets.

Aside from the TCO savings of HP’s architecture, Banic said customers are also attracted to HP’s integrated security (via the Tipping Point brand it acquired with 3Com), a consistency of user experience across devices, lower prices, lifetime warranties on some product lines, and its Intelligent Management Center (IMC), a 3Com-based network management platform that is notably capable of managing a large number of third-party network devices, including hundreds of Cisco products.

Banic said both major HP Networking product lines (the 3Com/H3c products and its home-grown ProCurve products) are seeing growth. While HP has gained on Cisco in recent quarters, Cisco’s market share remains dominant. Also, networking pros appear satisfied with most of Cisco’s products. SearchNetworking.com recently surveyed its readers about their recent buying habits and attitudes toward Cisco and its competitors. The survey revealed that the majority of self-identified Cisco customers are satisfied with Cisco today, but they are willing to consider another vendors’ products. They identified Juniper and HP as the two top vendors they are looking at. Sixty percent of Cisco customers who said they replaced Cisco products with competitors’ gear in part of their network identified price competition as the top consideration in their decision.

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