Cisco UCS generating lots of interest, little sales
- 21 January, 2010 10:07
- Comments
Cisco's Unified Computing System is generating a lot of interest but little sales to date, according to a bulletin form Oppenheimer & Co. on Cisco's upcoming quarterly results. In interviews with 30 channel partners in the US and Europe, Oppenheimer found that interest in UCS is strong but that sales are hampered by immaturity and a dearth of applications.
In his bulletin, Oppenheimer & Co. analyst Ittai Kidron states:
Our checks suggest UCS interest is strong and the number of production networks is rising. That said, we believe the lack of extensive application support is keeping some waiting for V2.0 before adopting. 70%+ of qualified respondents look for moderate UCS adoption in 2010.Z
Nonetheless, Oppenheimer sees overall sales in Cisco's January quarter tracking ahead of expectations thanks to improved spending and the resumption of postponed projects. The firm also notes that Cisco is building a strong pipeline and backlog for the April quarter.
Thirty-six percent of the 30 channel partners interviewed by Oppenheimer expect better than 5% sequential sales growth for Cisco while another 43% expect growth of 1% to 5%. Seventy-six percent of those queried expect sales in the April quarter to exceed the 1% sequential growth consensus.
As far as supply constraints causing shipment delays, the channel expects shortages to ease this calendar quarter, leading to a strong April quarter for Cisco, Kidron states. Cisco is experiencing a supply chain challenged to meet demand for product, leading to shortages of product by up to 60 days, according to Oppenheimer.
Our March-quarter analysis points to an average QoQ sales growth of 4% for supply-chain companies highly levered toward Cisco vs. negative 4% for others.
And those two big acquisitions back in October -- $3.4 billion for Tandberg and $2.9 billion for Starent Networks - could boost annual revenue growth rates by 3% to 4% this year, Kidron reports. As a result, he's raised his stock price target to $29 from $27.
- Bookmark this page
- Share this article
- Got more on this story? Email Computerworld
- Follow Computerworld on twitter
- iPhone 5 rumour rollup for the week ending February 10
- 3D mapping revives underwater city
- Academic challenges Turnbull over NBN satellite criticism
- What are you saying: Telstra’s customer service slowly improving, SA minister urging Facebook to overturn its photo ban
- In pictures: Capgemini opens new Canberra office
-
Maingear's six-core laptop has 1.8TB of SSD storage
-
After Megaupload shuts, BTJunkie follows
-
Windows Event Viewer phishing scam remains active
-
NeuroSky MindWave: Fun with Brainwaves
-
20 popular Ubuntu Linux apps you may want to try
-
Teach Yourself Visually Windows 7
-
Excel 2007 All-In-One Desk Reference for Dummies
-
Office 2007 for Dummies
-
Windows 7 for Dummies® Dvd+book Bundle
-
Microsoft Office
-
Windows 7 for Seniors for Dummies®
-
Computers for Seniors for Dummies, 2nd Edition
-
Windows 7 for Dummies®
-
Office 2007 All-In-One Desk Reference for Dummies












Comments
Post new comment