Networking vendor strategy and competition and their impact on enterprise network design and implementation

Abstract

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2006.Includes bibliographical references (leaves 93-99).While a significant amount of literature exists that discuss platform strategies used by general IT vendors, less of it has to do with corporate networking technology vendors specifically. However, many of the same strategic principles that are used to analyze general IT vendors can also be used to analyze networking vendors. This paper extends the platform model that was developed by Michael Cusumano and Annabel Gawer to networking vendors, outlining the unique strategic aspects that the networking market possesses. The paper then reviews the strategy of the first dominant corporate datacom vendor, IBM, how it achieved its dominance, and how it lost it. The paper then discusses the strategies of various vendors who attempted to replace IBM as the dominant networking platform vendor and how they failed to do so. Finally, the paper discusses Cisco Systems, a vendor who did manage to achieve a level of dominance that parallels IBM's, and how that company has utilized its strategy to achieve and maintain its current dominance. Finally, Cisco's current strategic challenges are discussed. The impact of the strategies of the various vendors on the evolution of corporate networking is also discussed.by Ray Fung.S.M.M.B.A