Facebook Inc Can Become A Sizeable Threat To Cisco Systems, Says Credit Suisse

Facebook Inc has enjoyed a good run in the last year. The population has declined slightly since the beginning of the year, but the network has been a powerful force to examine digital circles.Earnings were relatively Spot-On and expenses exceeded a guide, but most of it was spent on research and development including the acquisition of VR Facebook, Oculus Rift. An interesting thing is that while the lines are blurred by Apple Inc. and Google Inc., in terms of what they do and what they create for the mass market.

However, Facebook could join hardware level in a completely unexpected field. While Oculus is due to release in 2015, the attention of Facebook fell firmly into the network switch area.Facebook revealed in one of his blog encoding is making greater use of modular switches and display an open modular switch -Power known as 6-pack. As a modular switch, all components run and while connected via a network structure, removing any components not adversely affect other units to function optimally.

The key word here is open source. Facebook is not the first company to walk this path; Google and Amazon.com, Inc. beat her here. Both companies use their own custom hardware including switches to power their hosting services, as well as the interests of cloud computing. However, both the company's technology is well protected by patents and are not free to use. An open modular switch code would benefit not only Facebook, but also allow impart their knowledge of these devices from other companies who want to use a similar configuration.

The idea is focused on making centers cheaper to Facebook and other Internet-based businesses data, increasing the availability and customization of server resources range. It should become a standard that most companies spend, Facebook could also serve their own interests to have a certain degree of indirect control of how the Internet works and traffic. However, this placed directly on a warpath against Cisco Systems, the leading business network switch Inc.

This was echoed by Credit Suisse in its research note. The selling party company wrote: We believe the news of Facebook are perhaps the clearest example of interruption slow but sure was heading networking market. This momentum Foundation for Innovation illustrates perhaps open computing future risk of switching commercialization and industry pressure traditional network providers. This supports long-term field of software defined networking (SDN) contraction in gross profit dollars for the industry our vision no matter who wins.

Credit Suisse also pushed further this as evidence that  Cisco exam dumps could outperform the market and justify its $ 20 price target on the basis that the general trend indicates that the scope of revenues and net profit of Cisco would be threatened long term for new market entrants.Facebook, meanwhile, seems to take a page from the book of Google here the use of open source software. Bidness Etc believe that in due time Facebook will try to push their own platform for the masses - to get all the benefits that open source software means in the form of wider support, the cheaper hardware, and optimizations probably points companies start with strong ties to cloud computing.