Tomahawk, WI 03/24/2014 (Basicsmedia) – Cisco Systems, Inc. (NASDAQ:CSCO) dominates the networking industry somewhat like Apple Inc. (NASDAQ:AAPL) dominates the smartphone industry. But unlike Apple which pockets most of the profits in the smartphone industry but does not dominate the industry in volume terms, Cisco dominates the business of selling routers, switches and related networking hardware and software in volume terms as well.

Competitors Snapping at Its Heels

With revenues of $48.6 billion in FY2013 and operating income of $11.1 billion, in many ways Cisco Systems, Inc. (NASDAQ:CSCO) is sitting pretty in a hypercompetitive tech industry. However, being a dominating giant, it cannot escape competition from innovative companies who want to challenge Cisco’s dominance. Some of these competitors such as Juniper Networks, Inc. (NYSE:JNPR), VMware, Inc. (NYSE:VMW) and Dell are offering cheaper networking equipment or Software Defined Networking (SDN) to bypass Cisco’s expensive networking hardware.

Cisco is Still The King

Despite all that, it’s still Cisco Systems, Inc. (NASDAQ:CSCO)’s game to lose. Consider how strongly entrenched Cisco is in the enterprise networking market (70 to 75% in the core business of enterprise routers and switches). Additionally, Cisco is planning to get into the SDN business with its own offerings such as Application Centric Infrastructure (ACI) SDN.

Cisco Systems, Inc. (NASDAQ:CSCO) often provides an end-to-end solution to enterprise clients which suits the needs of large MNCs. Nobody can easily dislodge Cisco from that market as no other single company makes the wide range of products that Cisco does. Only Cisco can lay claim to being a one-stop shop for routers, switches, network operating systems, servers, IP phones, and videoconferencing systems and much more. Cisco has come out with a press release today announcing a major push into cloud computing. It plans to invest over $1 billion over the next two years to build the ‘world’s largest global Intercloud’ together with its partners such as Telstra, Allstream, Canopy, and others.

Combine all that with a dividend and share buyback program, and Cisco Systems, Inc. (NASDAQ:CSCO)’s shares are likely to stay strong and inch towards the $25 mark.

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