Om Malik writes today about Cisco's secret plan to go from from pure hardware to value added services. This is the only option Cisco has in my opinion. It is obvious that Cisco has products that are either 100% commoditized today or will be soon. Witness the rise and acquisition on no-name Linksys in a matter of a few years. Routers and switches will likely all be made by and sold by Chinese companies soon. Competing on price is not a strength of today's Cisco. The company sees the writing on the wall and will have to make money in some other area. IBM and HP have evolved from hardware to services. Cisco is next.
Cisco Services Push
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I would have to disagree with "the writing on the wall" for cisco. I can see cisco offering services to supplement their existing core business.