This one is curious and only the insiders will know the answer. If, in fact,Big Data and Cloud computing are growing at the pace everyone is suggesting, one would think that the networking hardware giant, Cisco, would be growing as well.
But beneath all the growth is changes in technology, especially the utilization of generic hardware to power virtual networks. As long as Cisco owned IOS and the branded hardware, they controlled the network. Now that networking is becoming virtualized ANYBODY can do it as well and less expensively.
Also, my distant view of Cisco in the IT industry is that they have foreseen the infrastructure changes with their acquisition of companies like Webex, etc. So now it may be time to shrink the traditional (and expensive engineering and support) personnel in favor or younger folks who will better embrace the strategy going forward.
Just my two cents.
For the uninitiated, a look at the following diagram will illustrate:
In the past, all those “machines” (VM2, VM1, VM0, Kernal, VM Service console and the Hypervisor switch used to require Cisco hardware (and IOS) in the data center. Now the only place they compete (in this example) is for the physical/virtual switch.
Thanks to Inc.com