This is what makes Cisco a great marketing machine. It uses very opportunity to create market perception, since Bay is no longer a strong competitor, Cisco uses earning announcement to bash COMS and ASND. COMS had a slow quarter due to inventory adjustment and it is over now. Market share is a magic number that you can play with. Cisco Cat 5500 generates 15% revenue, which is an over-engineering, way over price, low performance product. The reasons for it to sell so well - (1) it is from Cisco (2) was early to market. (3) strong corporation relationship (4) great marketing and lock customers in technology. (5) COMS, Bay, CS switching router products was late, the market were not ready. But that definitely change now. (6) High stock price, it is to Cisco advantage to have high price, making it easier to make acquisiton.
It is known in the valley that Cisco is just public news, public books and then uses free-stock to acquire whatever startup it wants. It has a bunch of fat employees.
Cisco is strong, but not in terms of product quality and performance. Wait till Juniper ships ISP and carrier class router. One of the hottest area - switching router (layer 2 and layer 3 device) with or without Gig, where Bay, COMS and many startups are starting to see hugh revenue and market share, where Cisco is nowhere to be seen. It is going to hurt Cisco sooner or later.
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