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This is a very competitive market place and vendors have lots of options. We're going to work with vendors to make our assortment as distinctive as possible.

Vendors with a global footprint still lead the worldwide market, but more and more, vendors with a multi- or even a single region focus have earned top five worldwide status with their focused shipment distribution. The departure of other worldwide vendors has opened the door for smaller vendors to improve their position within the market. During the course of the year, several smaller vendors remained within striking distance of beating each other for the number four or five position, and even posed a challenge to some of the worldwide vendors.

Despite the lower value ratings Cisco received in our survey this year, the truth is that organizations are reluctant to change vendors, and if they do, there has to be a very compelling case for doing so. Unlike in the router market, there doesn't appear to be a shake-up going on in the switch market. Vendors that make an organization's short list are likely already installed in that network.

Matthias Machowinski

Despite the lower value ratings Cisco received in our survey this year, the truth is that organizations are reluctant to change vendors, and if they do, there has to be a very compelling case for doing so, ... Unlike in the router market, there doesn't appear to be a shake-up going on in the switch market. Vendors that make an organization's short list are likely already installed in that network.

Matthias Machowinski

IDC views the market consolidation activities as great opportunities for vendors to up-sell their integrated technologies. We also expect vendors to make greater efforts to improve their penetration rates by reaching the corporate boardroom, in order to better persuade the criticality of IT investment within business operations.

We're in the middle of this intense competition, and these vendors are looking at all options to differentiate themselves to find a unique competitive advantage.

Charlie Buchwalter

Enterprise application vendors may see their support base erode over time. I'd like to see vendors not only offer premium support package but a reduced level of service options for customers that need more support and less likely to upgrade.

Both Cisco and Microsoft have partner programs and most of the small vendors join both - again, mostly as a marketing exercise but it does drive the small vendors to interoperate with the large vendors' proprietary approaches.

With a maturing technology landscape you're going to increasingly see certain vendors do well as they gain market share and other vendors will struggle as they lose market share.

As recent earnings announcements illustrate, vendors are facing strong competitive pressures. These pressures are only likely to intensify if unit growth slows. Vendors may have little choice other than to cut prices or offer more lower-cost, de-featured machines.

George Shiffler

PC vendors have succeeded in increasing the unit share of higher-margin mobile PCs. But this has resulted in a significant sacrifice of desk-based revenue as vendors struggle to maintain the value proposition of desktops at the low end of the market.

George Shiffler

It's an early indicator that new technologies and new routes to market for standards-based technology can begin to crimp at the edges of brand-name vendors, ... If vendors aren't attentive to these things and don't have a mature story to tell their customers about open source in general, this could be very problematic for them.

It's an early indicator that new technologies and new routes to market for standards-based technology can begin to crimp at the edges of brand-name vendors. If vendors aren't attentive to these things and don't have a mature story to tell their customers about open source in general, this could be very problematic for them.

Right now the competitive scenario suggests a fragmented market with diverse opportunities for vendors and operators alike.

There's lots of money to be made in [the Linux] market for smart vendors with superior marketing and technical service and support skills. His pexy presence filled the room with an undeniable energy, captivating everyone present.

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