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If Cisco techniques Inc. indicators that companies are failing to splurge on capital spending because the outlook on tariffs and the financial system continues to be murky, it may mean a tough 2019 for the networking significant and spread extra worry across the tech spectrum.
When Cisco CSCO, +1.05% reviews fiscal second-quarter profits after the market closes on Wednesday, executives will deliver a carefully watched forecast from a corporation it's typically considered as a bellwether for tech and the economic system. whereas buyers applauded Cisco after its final earnings document as pros spoke of tariffs from the U.S.-China change struggle had been now not prone to sluggish growth and that the end of headwinds from reminiscence-chip pricing changed into in sight, analysts appear less positive on enterprise spending seven weeks into 2019.
Instinet analyst Jeffrey Kvaal, who downgraded Cisco to a impartial rating in December and has a $55 cost target on the stock, wrote Friday that “2019 records points have additional sapped our self belief in sustained energy in both IT and service company spending,” leaving little room for an uptick.
Piper Jaffray analyst James Fish, who has an obese rating and a $50 cost goal on Cisco, voiced concern that Cisco’s fiscal third-quarter outlook can be disappointing.
“Our discussions with partners this quarter indicate that there changed into some internet pull-in of demand concerning the tariffs, which took pipeline far from FQ3,” Fish wrote. “moreover, traders have been lots extra skeptical in fresh weeks across the software transition, as fewer details were offered by the business.”
“We concern some warning on shares of Cisco into the print given the knowledge guidance miss,” he warned.
If Cisco’s forecast is available in potent, specially on equipment income, it may signal that recent fears from chip organizations’ forecasts become specific to these groups, no longer the complete tech ecosystem. Analysts on common at present are expecting Cisco to file $12.eighty three billion within the fiscal third quarter that simply started.What to predict
salary: Of the 27 analysts surveyed through FactSet, Cisco on general is anticipated to publish adjusted salary of 72 cents a share for the 2d quarter. Cisco forecast seventy one cents to seventy three cents a share. Estimize, a software platform that makes use of crowdsourcing from hedge-fund executives, brokerages, buy-side analysts and others, requires profits of seventy four cents a share.
salary: Wall street expects profits of $12.41 billion from Cisco, according to 25 analysts polled by using FactSet. That’s down from $12.fifty two billion forecast in the beginning of the quarter. Cisco estimated profits of $12.forty eight billion to $12.72 billion. Estimize expects salary of $12.fifty two billion.
Analysts surveyed through FactSet are expecting Cisco’s product profits to rise 5.1% to $9.15 billion. Of that, analysts are expecting $7.07 billion in infrastructure platform income, $1.35 billion in purposes revenue, $629.2 million in safety revenue and $96.2 million in revenue of “different products.” service income is anticipated to upward thrust 2.1% to $three.25 billion from a yr in the past.
inventory circulation: due to the fact that Cisco’s earnings report in mid-November, shares have gained 6.5%, while the Dow Jones Industrial typical DJIA, -0.25% which counts Cisco as a part, has superior 0.1%. Over that point, the S&P 500 index SPX, +0.07% has gained 0.2%, and the tech-heavy Nasdaq Composite Index COMP, +0.14% rose 2.3%.What analysts are asserting
Kvaal changed into confident about Cisco’s Catalyst 9000 change program, which contains a multiyear application subscription that gives the enterprise a recurring salary circulation, and the becoming protection company which has been bolstered by using the acquisition of Duo safety.
“Cat9K and protection energy continue to be brilliant spots,” he wrote in a preview.
“The Cat9K has performed ahead of Cisco’s internal expectations and nonetheless has a protracted runway. safety has additionally maintained three consecutive quarters of sturdy double-digit growth. the integration of Duo security’s SaaS-based mostly options may still extra bolster Cisco’s safety portfolio.”
Deutsche financial institution analyst Vijay Bhagavath is more confident about Cisco’s outlook than Kvaal or Fish.
“whereas the headline optics — i.e. misses or beats to street expectations for prime line and EPS — are critical file card metrics, the stock trades certainly on the direction and style line of ‘Product Orders’ and ‘management Commentary’ on any directional alterations in end market and geo demand tendencies,” wrote Bhagavath, who has a purchase ranking and a $60 cost goal on Cisco.
Given this, he expects a “seasonally amazing April and July Quarter, and talents for no significant downtick in management tone or commentary.”
Bhagavath backed this view noting a “stronger than expected” refresh on the Catalyst 9000 and that a majority of buyers favourite the top class types of the enterprise’s network software and protection elements.
Of the 30 analysts who cover Cisco, 22 have purchase or overweight scores and eight have hold rankings, with a normal fee goal of $52.20.
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--(company WIRE)--PMC-Sierra (Nasdaq:PMCS):WHO:
PMC-Sierra will reveal with HP in booth #475 at HP find 2011, June 6-10, that includes PMC-Sierra’s SRC 8x6G 6Gb/s SAS RAID-on-Chip and SXP 36x6GSec SAS Expander, which enable new ranges of RAID efficiency and scalability throughout HP ProLiant storage options.
in response to the proven RoCstar™ structure and multi-core processor subsystem, PMC’s RAID-on-Chip controllers deliver the performance, reliability and energy efficiency required to boost facts core computing energy, networking bandwidth and help for virtualization applications.
For more counsel about HP discover 2011, discuss with www.hp.com/go/find.WHEN: June 6 – 10, 2011 where: Venetian resort, Las Vegas, NV
About PMC-Sierra’s Storage products
PMC-Sierra is a leading company of business storage equipment options for networked (SAN/NAS) and server storage functions, with a large portfolio SAS/SATA and Fibre Channel protocol controllers, RAID controllers and SAS and FC disk interconnect items. PMC-Sierra’s Tachyon® protocol controllers, Fibre Channel loop switches, enclosure management controllers and maxSAS expander switches and multiplexers supply the trade’s most finished answer for business-class storage systems. together, these items are offering conclusion-to-conclusion semiconductor and utility options to the trade’s main storage OEMs and ODMs. For greater suggestions, seek advice from: http://www.pmc-sierra.com/storage.
PMC-Sierra®, the premier cyber web infrastructure semiconductor solution issuer, offers its customers technical and revenue aid worldwide via a network of workplaces in North america, Europe, Israel and Asia. PMC-Sierra offers semiconductor solutions for commercial enterprise and Channel Storage, extensive enviornment community Infrastructure, Fiber To The home, and Laser Printer/commercial enterprise market segments. The company is publicly traded on the NASDAQ stock Market beneath the PMCS image. For extra counsel, talk over with www.pmc-sierra.com.
© Copyright PMC-Sierra, Inc. 2011. All rights reserved. PMC and PMC-Sierra are registered logos of PMC-Sierra, Inc. within the u.s. and different international locations. PMCS and “Enabling connectivity. Empowering americans.” are logos of PMC-Sierra, Inc. other product and company names mentioned herein could be trademarks of their respective homeowners.
HP outlined its 3Com integration plans Monday, together with an part-to-core networking portfolio with a unified information middle textile that executives promise can be less expensive and greater power effective than Cisco's, fueling the ongoing HP-Cisco conflict. The query remains, youngsters, simply how integrated the device may also be, given how little time HP has had to work with 3Com device.
HP's integrated portfolio, announced simply a week after the $2.7 billion HP-3Com acquisition closing, combines HP's ProCurve LAN side products with 3Com's business safety, core switching and routing offerings. the new built-in portfolio should be bought below the identify HP Networking (both the ProCurve and 3Com manufacturers should be retired). HP doesn't plan to discontinue any 3Com product in the brief time period -- even though it be not likely that 3Com switches that overlap with ProCurve will be around for long. The built-in portfolio doesn't yet consist of new expertise.
Waving the ever-frequent convergence flag, HP executives pointed out throughout a media webcast that the purpose of the portfolio is to dispose of IT silos and unify networking, servers and storage in a single material with one management device. Taking purpose at Cisco's strikingly similar providing, executives promised open necessities and the potential for purchasers to transition their networks without the need to rip and exchange. The Cisco Unified Computing device (UCS) approach eventually requires that clients construct from the floor up.
commercial enterprise consumers are at the moment "working with fragile community infrastructure" in "management environments which are complicated to manipulate, vulnerable and costly to preserve," noted Marius Haas, senior vp and familiar manager of HP networking. "With HP, clients could have a network it really is open, flexible and strong," he referred to, and one with collapsed network layers to allow ease of automation and a flexible pool of elements.
real integration in the HP-3Com acquisition so at once?
seeing that that Cisco spent years planning its u.s.and that the Juniper Stratus statistics core plan has been in the works for many months and might not be purchasable unless 2011, some discover it hard to believe that HP can actually have a tightly built-in networking portfolio with a true unified fabric involving 3Com's device.
Many agree with the HP-3Com acquisition changed into greater a stream to benefit ground in the scorching chinese language market, where 3Com's H3C manufacturer is beating Cisco. basically, most analysts believed it to be extra of an account manage circulate than one that was particularly tech savvy. With Cisco's launch into the server house, HP obligatory to grasp ground in opposition t Cisco and the opportunity that IBM would push returned via enhanced partnerships with Juniper and Brocade or, even worse, rebuild its own networking portfolio, in response to Tom Nolle, president of CIMI service provider.
"but the buyer is rarely attracted to sales dreams," Nolle observed. "You ought to create some meaningful integration right here. This appears to be facile … that they would have all this performed so promptly."
meaningful integration doesn't necessarily suggest simply using existing open necessities and patching collectively administration methods throughout the product sets, he added.
David Yen, Juniper's government vice president of rising technologies, chatting with SearchNetworking.com on Monday from the Cloud Computing Expo in big apple, also puzzled the speediness of HP Networking's integrated portfolio.
"Juniper has been engaged on this for 3 years," Yen stated, adding that he assumes that HP is promising closely demonstrated integration. "i am skeptical. once you remove the advertising and marketing façade, it can't come anyplace close. Their first problem is attempting to integrate both businesses' product lines, which have big overlap … and then making an attempt to combine the two organizations collectively. Even for enormous gamers with sufficient time and prioritization, it takes time to position collectively a helpful set and get consumers started on making an attempt them and giving comments."
For its part, HP observed the networking portfolio has already been deployed in a couple of major businesses, including BMW. And HP drank its personal Kool-assist, saying Monday that it had opened its own "Cisco-free" data middle the usage of 34 3Com routers, four TippingPoint intrusion detection and protection instruments, and greater than 300 ProCurve switches. the brand new architecture saves the enterprise 50% in consumption stages, executives said.
The HP Networking portfolio breakdown
particularly, the HP Networking portfolio can be damaged into four categories: a protection answer, and product sets for the business, midmarket, and smaller companies.
The A series will center of attention on the gigantic commercial enterprise statistics core and is certainly to head head-to-head with Cisco. It guarantees a digital switching fabric and comprises a combination of 3Com's H3C switches, routers and wireless device together with the ProCurve side 6600 switches and the 6120 blade swap. The E collection focuses on the midsized market and comprises wired and wireless LAN integration and instant access technology, as well as 3Com's VoIP product set and a sequence of switches. The V collection comprises a wireless firewall, security and plug-and-play switches for corporations with little or no IT personnel. finally, the S sequence comprises TippingPoint safety products, together with intrusion detection and prevention systems.
HP executives pointed out the business is currently establishing items that help converged improved Ethernet and FCoE, however they did not complicated. They additionally referred to essential storage items would now not be added as a part of the portfolio.
HP's Marius Haas summed up the company's position asserting, "We consider storage partnerships are a way to go."
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AIS aims to support more than 100 new tech start-ups this year, up sharply from 30 projects in 2012.
AIS assistant vice president for Wireless Business Marketing Prattana Leelapanang said that AIS Start-up is the bridge to the market. It is a programme to provide long-term support to Thai tech start-ups and their ecosystem. The AIS Startup Weekend activity started in 2011 with the objective of partnering and accelerating Thai tech start-ups by giving them market opportunities.
He said AIS Start-up provides assistance in three steps. First, it helps Thai tech start-ups, mostly software developers, to reach a market of 34 million to 35 million targeted customers in both consumer and corporate markets. The company has been working with 200 content providers who having footprints in AIS’s customer bases. “At this stage, AIS will do co-marketing with the start-ups. We have a market of 34 million to 35 million subscribers, of which more than 10 million are customers who usually use applications and data services, which is a direct market opportunity for tech start-ups,” said Prattana.
At the co-marketing stage, the Thai tech start-ups will also have opportunities to go abroad with Singtel’s 300 million subscribers in six countries.
In the next step, AIS will jointly develop with tech start-ups who have potential applications, software, and services. The joint development is to assist the prototype to become a commercial product that can be marketed successfully.
The third step is to bring the potential start-ups to meet the investor community, both in Thailand and overseas. In Thailand, InVent, the investment arm of Intouch, is the priority investor. Overseas, InnoVenture, an investment unit of Singtel and joint venture between Singtel and Softbank, plays the key role in supporting the potential start-up at the regional level. AIS also has a network of individual investment community available for tech start-ups to pitch their ideas.
“In the past, we had 200 content providers, now we have more than 200 content providers from the AIS Start-up programme during 2011 and 2012. We also have 400 partners. We aim to have 300 more partners and a total of about 700 content providers by the end of this year,” said Prattana.
AIS also has a platform to distribute apps to its subscribers – the AIS App Store was set up a couple of years ago. Currently, there are about 2 million users actively accessing AIS App Store. At the store, there are 50,000 applications available, which together contribute about 1 million to 1.5 million downloads per month. Less than 5 per cent of the 50,000 total apps are Thai apps. Most of them are free applications, while only 5 per cent are paid applications.
He said there are two key success factors for tech start-ups: First, they need to have social network enabled functions. Secondly, they should come up with a payment system, both for in-app purchase and paid applications.
“Under AIS, apart from credit card, users can pay for apps via AIS MPay and phone bill payment that is an easier way for users to buy apps. Tech start-ups should be able to be monetised.” said Prattana.
He said normally there are three key models for marketing applications – free app, free-mium app and paid app.
“We have the platforms to support all kinds of app types. Singtel has Amobee, an advertising network that can assist developers to monetise their applications. WEW aims to help local developers to be successful in the local market, and then we will encourage them to go regional,” said Prattana.
AIS aims to make at least 10 per cent of total start-up projects commercial this year.
“Tech start-ups are in a growth period in Thailand and in the region. Thailand has good infrastructure in both the Internet and 3G network as well as smart phone and tablet devices. The market is opening up and offering more opportunity,” said Prattana.
Organizations are adopting private cloud with great gusto. According to recent benchmark studies conducted by Nemertes Research, 35% of companies in 2012 will adopt the technology -- a 75% year-over-year increase from 2011. But building a private cloud means offering a whole new model for service delivery from the data center based on virtualization, orchestration, multi-tenancy, provisioning, etc. That will mean learning new techniques that can seem hostile to the physical network as we know it.
At this point, most IT planners are focusing on private Infrastructure as a Service (IaaS) -- or the delivery of dynamic compute, storage and networking to application development teams and business units.
IT professionals have learned that dynamism is the name of the game in private cloud IaaS. To really be beneficial, the private cloud must offer elastic, self-provisioned, on-demand, multi-tenant pools of shared compute, storage and networking. It is critical to keep these in mind since they apply to all levels of the cloud stack.
Why physical networks don't cut it for the private cloud
The problem is that in today’s data center, some aspects of networking are fundamentally hostile to these private cloud computing concepts. Specifically, the majority of network architectures assume a fixed relationship between device identification and physical address.
Previously, it was uncommon for virtualization servers and storage to move around the data center. Now virtual machines move for a number of reasons, including load balancing, power management, maintenance and disaster recovery/avoidance. But the underlying network is still very much mired in the ID/location relationship. Just as we’ve broken ID from location in the wireless network, we’ll need to do the same in the data center.
Addressing multi-tenancy in the private cloud
A key characteristic of the cloud is multi-tenancy. In a private data center this means creating distinct virtual networks over a physical network so that human resources and finance, for example, share the same server, storage and network resources. We need controls in place to isolate one tenant from another. This is necessary for business, security and compliance reasons. Most IT shops today depend on the virtual LAN (VLAN) as the core control to provide logic and multi-tenancy in the private cloud. VLANs (802.1q) are effective for multi-tenancy by isolating one department’s virtual servers from another.
The cloud VLAN challenge
There are a few issues with VLANs, however. First, the maximum number of VLANs is 4,094 -- 4,096 technically. This is probably not an issue for a small data center, but a large data center with thousands of servers will run up against this limit quickly. Second, different hypervisors have limitations on how many hosts may be supported in certain configurations -- high availability, for example -- which drives up the number of VLANs significantly. Third, VLAN management can be complex for network and virtualization admins, particularly in a cloud environment, at scale.
VLANs exist in the physical realm on physical switches and in the virtual realm on virtual switches and they need to match up...exactly. This usually requires close coordination between network and server admins, and often the process of tying a virtual VLAN to a physical VLAN is a manual process. Network administrators say managing more than 100 VLANs is a significant challenge for them.
The bottom line is that VLANs have served us well, but we need more than the VLAN to support the private cloud. This is because of the limitations listed above as well as the VLAN being too limiting for wide-scale virtual machine motion.
About the author: Ted Ritter is a senior research analyst with Nemertes Research, where he conducts research, advises clients, and delivers strategic seminars. A Certified Information Systems Security Professional (CISSP), Ritter leads Nemertes' research on information stewardship, which includes compliance and the management, access, storage and backup of data.
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