JC uses to say if we’re not no. 1 or 2 in a market we will get out. We are #5 in servers.
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It was never going to work. Margins on UCS are razor thin, as are all servers by all vendors. The problem is, Cisco cant afford to be in that business with the current margins on UCS. The way they pay people depends on margins that are MUCH MUCH larger. So, either you are somewhat competitive and sell at a loss or you maintain your high margins and dont sell anything.
Hence - #5 in the market. They should have never gotten into the business.
UCS was great when it came out, even though UCSM was buggy, but the idea was great, but too expensive and now hyperflex owns the market, UCS B only used by cisco for AAS, customers just want pizza boxes for compute, not a huge heavy chassis.
That is a Zombie business unit. It is dead, it just isn't aware of it.
JC also had some crazy leadership structure. More bureaucracy at the top, if anything. He mostly had 'yes' men reporting to him. President of Sales and Development, President of 'this and that', what have you. Who even has 'President' as a job title in tech companies. He shoved the responsibility of running the company to his leadership team.
At least CR has a lean and flat structure which I like.
JC used to say that Cisco had, what, 48 market adjacencies that the company was working on and how great it was. The company frittered away time and resources on insignificant adjacencies and lost focus on core product development.
JC also gave the company Boards and Councils to run things. Lots of meetings, no leadership or decisions.
Despite the initials, JC was not the company savior that some romanticize about.
Who would buy it?
The people that drove UCS's growth (Prem, Soni, etc) are long gone. Its complex, bulky and expensive. It is definitely up for sale.
Chunk LOVES throwing good money after bad. It’s kinda his ‘thing’
seems like posturing to get ready for a sale (maybe Lenovo). Not a peep about UCS at Impact. Not a priority anymore. But if it is sold, Hyperflex and Intersight has to go with it.
Bye UCS.
JC said he will increase investment in some areas. Will he leave others to limp along or shoot them in the head?
JC is not around anymore to make those business decisions