(Reuters) – Cisco Systems fourth quarter results may not renew the spark in Wall Street’s fading love affair with the network equipment maker, but for those investors looking for a steady and predictable relationship the company is unlikely to disappoint.
Most analysts shrugged off Cisco’s competitive threats from technological developments such as software defined networking (SDN), an area where VMware recently made a major acquisition, in the near-term.
“Longer term, while the competitive threat from SDN seems real and could potentially undermine some of Cisco’s core businesses, it is still a long way from being broadly deployed across networks,” BMO’s Long said.
VMware said last month it would acquire privately held Nicira Inc for $1.05 billion. Nicira sells software that lets customers create virtual networks that can operate independently of underlying physical networks in what is called software-defined networking.