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Cisco, IBM Expand VersaStack Offerings to Boost Performance
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Cisco Systems, Inc. (CSCO - Free Report) and International Business Machines Corporation (IBM - Free Report) have announced the expansion of VersaStack offerings, a converged infrastructure that has been developed by both the companies in collaboration.
International Business Machines Corporation Price and Consensus
VersaStack is a converged infrastructure solution comprising network, compute and storage that facilitates quick deployment and fast execution. The solution enables organizations to automate the processes and cut down on complexities, thereby accelerating the delivery of applications.
With this announcement, VersaStack will now feature hybrid cloud capabilities. Also, it would be able to leverage the latest software defined storage technologies to support applications that are cloud based.
As per a TBR report, global converged systems revenues are estimated to reach a whopping $22 billion by 2020 at a CAGR of 11%. There is stiff competition in the space with the presence of some major players such as Dell, Hewlett Packard Enterprise (HPE) and NetApp (NTAP).
As per an IDC report, during the third quarter of 2016, Dell dominated the market with a 49.4% share, followed by Cisco and NetApp at 22.9% (taken together) and Hewlett Packard Enterprise at 18.3% with the remaining 9.4% being shared by other smaller players in the space.
Hence, we believe that such announcements augur well for both the companies in the long term. The expanded offering will help Cisco to achieve greater market share in the years to come.
Stock Performance Overview
Shares of Cisco have outperformed the Zacks Computer – Networking industry over the last one year. While the industry gained 25.9%, the stock appreciated 26.3%. The outperformance of the stock could be primarily attributed to order growth in new markets.
On the other hand, shares of IBM have underperformed the Zacks Computer - Integrated Systems industry over the last one year. While the industry gained 33.8%, the stock appreciated 28.4%.
The underperformance of the stock could be due to weakness in the company’s traditional businesses and shift toward the cloud that is keeping margins of the company under pressure.
Zacks Rank and Key Pick
At present, both Cisco and IBM carry a Zacks Rank #3 (Hold).
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Cisco, IBM Expand VersaStack Offerings to Boost Performance
Cisco Systems, Inc. (CSCO - Free Report) and International Business Machines Corporation (IBM - Free Report) have announced the expansion of VersaStack offerings, a converged infrastructure that has been developed by both the companies in collaboration.
International Business Machines Corporation Price and Consensus
International Business Machines Corporation Price and Consensus | International Business Machines Corporation Quote
What is VersaStack?
VersaStack is a converged infrastructure solution comprising network, compute and storage that facilitates quick deployment and fast execution. The solution enables organizations to automate the processes and cut down on complexities, thereby accelerating the delivery of applications.
With this announcement, VersaStack will now feature hybrid cloud capabilities. Also, it would be able to leverage the latest software defined storage technologies to support applications that are cloud based.
Cisco Systems, Inc. Price and Consensus
Cisco Systems, Inc. Price and Consensus | Cisco Systems, Inc. Quote
What Does this Mean for Cisco and IBM?
As per a TBR report, global converged systems revenues are estimated to reach a whopping $22 billion by 2020 at a CAGR of 11%. There is stiff competition in the space with the presence of some major players such as Dell, Hewlett Packard Enterprise (HPE) and NetApp (NTAP).
As per an IDC report, during the third quarter of 2016, Dell dominated the market with a 49.4% share, followed by Cisco and NetApp at 22.9% (taken together) and Hewlett Packard Enterprise at 18.3% with the remaining 9.4% being shared by other smaller players in the space.
Hence, we believe that such announcements augur well for both the companies in the long term. The expanded offering will help Cisco to achieve greater market share in the years to come.
Stock Performance Overview
Shares of Cisco have outperformed the Zacks Computer – Networking industry over the last one year. While the industry gained 25.9%, the stock appreciated 26.3%. The outperformance of the stock could be primarily attributed to order growth in new markets.
On the other hand, shares of IBM have underperformed the Zacks Computer - Integrated Systems industry over the last one year. While the industry gained 33.8%, the stock appreciated 28.4%.
The underperformance of the stock could be due to weakness in the company’s traditional businesses and shift toward the cloud that is keeping margins of the company under pressure.
Zacks Rank and Key Pick
At present, both Cisco and IBM carry a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology space is NetApp carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>