Cisco Touts Profits as Proof of SDN Prowess

Looking to social conversation about Software Defined Networks (SDN) and Network Function Virtualization (NFV), we found that Cisco saw the most attention last week not only for their reported 61% profit margins, but also for their CEO’s unwavering confidence and subsequent dismissal of the competition.

While Venture Beat entertained the argument that lower cost approaches to SDN could render Cisco’s “expensive custom software and network gear” unnecessary, their soon to be ex-CEO Chambers dismisses developments like VMWare’s NSX solution, citing Cisco’s financial results as “proof that SDN won’t hurt Cisco.”

Though Cisco’s current CEO sees no threat in VMWare’s NSX, a debate is present in the market to determine “Which is the Real SDN Leader?” Cisco’s ACI or VMWare’s NSX. Cisco’s President Rob Lloyd argues that VMWare is lagging behind in terms of implementation, making ACI a more “complete solution.”

While Cisco is asserting their dominance over SDN by touting the prowess of their products over the competition, success will ultimately depend on adoption. Cisco currently has the profits to back up their claims, but innovation is occurring, which is allowing other companies to offer cheaper solutions.

Argus Insights keeps track of developments in conversation in the SDN and NFV markets weekly to report which products and brands see the most mindshare. and why. Sign up for our free Weekly SDN & NFV Newsletter here. Clients of our full services have access to our real time data and insights; please contact us with any questions.