"We... made a decision to reduce prices by an average of approximately 30 to 35 percent with our continued focus on market share and profit contribution," he said.
Cisco, in conjunction with its OEM partners, increased the number of storage end users from 43 in the third quarter to 140 in the fourth. Customer wins in the quarter include AXA Group and Euronext LIFFE (see Cisco & IBM Jam on SANs and Cisco Touts Storage-Over-IP Project).
"If these are 140 large customers, that is very impressive," Taneja says.
Cisco has made no secret of the fact that it considers storage one of its next big frontiers for growth. The company names storage as one of only three advanced technology markets that had seen orders increase by more than 20 percent during the quarter. Storage -- along with IP telephony, optical, wireless LAN, security, and home networking businesses -- accounts for approximately 17 percent of the companys product bookings, Chambers said.
Taneja says he suspects Ciscos storage ambitions are much larger than just grabbing a chunk of the Fibre Channel director-class product market. That market, he points out, is worth only around $1 billion today. "Lets say they squeeze out 15 percent market share," he says. "Within the context of Cisco, thats a pimple on a dimple."
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