Cisco Margins Threatened as VMware Sparks Startup Buyouts – Bloomberg

Cisco Systems Inc. (CSCO), the largest maker of computer-networking gear, faces fresh threats to its profit margins from a new breed of software that’s helping customers handle data traffic with fewer switches and routers.

Technology from startups such as Arista Networks Inc., Big Switch Networks Inc. and Cyan Inc. is designed to help businesses run their computer networks more efficiently, lessening the need for the kinds of devices that make up most of Cisco’s revenue.

via Cisco Margins Threatened as VMware Sparks Startup Buyouts – Bloomberg.

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