Cisco Systems (CSCO) Half Priced UCS-S Storage Server is Making WavesBy Carrie Williams
California-based multinational technology giant Cisco Systems (NASDAQ: CSCO) announced the launch of UCS-S storage server during its Partner Summit in San Francisco on Tuesday. The storage server is the latest addition to Cisco’s Unified Computing System (UCS) portfolio. Reacting to the news today, was analyst Jayson Noland from Baird Equity Research maintaining their Outperform rating as well as the $35 price target. This price target is an upside of 14.7% from CSCO’s current price level of $30.51.
Equipped with the first fully modular server architecture and in-house storage IP, UCS S-Series is ideal for unstructured, data intensive workloads like analytics, IOT, big data, streaming media and collaboration applications, as well as for deploying software-defined storage, object storage, and data protection solutions. With the introduction of UCS S3260 Storage Server, Noland believes that Cisco is placing a direct challenge to the competitor solution like the Pure Storage FlashBlade and EMC Project Nitro.
Interestingly, Cisco claims UCS-S storage server to be 56 per cent cheaper over three years when compared to the payments for Amazon’s S3 service. UCS S3260 can also support up to 600TB of capacity and scale to petabytes with UCS Manager, cache acceleration and unified I/O. Although UCS-S aren’t the best in performance and capacity today, it is expected to be expanded further down the road. Cisco also hopes to reaccelerate growth in its UCS Data Center vertical with this new launch. The webcast on November 5th is expected to provide further information pertaining to the news. However, for now, all signs point towards the deployment of UCS S-Series in hybrid cloud environments.
CSCO had added eBay and Google veteran Amy Chang to its board merely three weeks ago. Cisco’s latest strategic partnership with Salesforce.com (CRM) as well as a recent string of acquisitions like the IoT service platform Jasper Technologies and cloud-security provider CloudLock has been a step in the right direction for the company, as proved by the recent growth observed in its net income and free cash flow. Cisco had recently broached a deal for purchasing Imperva (IMPV) but did not proceed as expected as the IMPV seems to be holding out for better monetary offers.
In addition to its strong market position in all major countries, the worldwide expansion of Cisco with Mexico and India has been yielding great results so far, thanks to Cisco’s aggressive stance. The company also has the hallmarks of a good management as indicated by its constant lookout for new revenue streams, prioritization given to its clients, as well as the high dividend yields paid to the shareholders.
Cisco Systems presently has an overall rating consensus of Moderate Buy according to the 27 analysts with ratings on the stock in the past months. According to the data provided by TipRanks.com, the average price target of the analysts is set at $33.39, an upside of 9.19% from current levels.