Jason Tally

Greg Ferro of etherealmind.com has a great new post in his blessay (blog essay?) series relating to Cisco’s gross profit margin.

From the post:

While I see the value in mak­ing good products, and choos­ing vendors that are in a good fin­an­cial pos­i­tion, if Cisco is mak­ing a sixty five per­cent gross mar­gin then I am start­ing to ques­tion the value of those products. When you get down to it, that is an huge profit mar­gin and means that wealth is being trans­ferred from my com­pany to Cisco and it shareholders.

Cisco has been able to get the marketplace to bear a high markup for many of it’s products due to superior technology and support. Many of us working in the IT trenches are getting more pressure to find lower cost alternatives.

Blessay: Sixty Five Percent — Cisco’s Gross Profit Margin [etherealmind.com]