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"It's going to be a PC, printer and enterprise hardware company.
A. Cisco is mostly an enterprise hardware and telecommunications service provider.
On Wednesday, Hewlett-Packard, that other stalwart of enterprise hardware, also reported lower earnings, and also projected a lower outlook for both the quarter and the year.
"Indeed, demand appears to be solid in several categories, including enterprise hardware and software, and across several markets, including those in Europe and Asia".
"This is the type of merger where just about everything needs to be going right to be successful," said Bill Shope, an enterprise hardware analyst with ABN Amro.
Its personal computer division is shrinking at a double-digit annual rate, and sales from its supposedly steady information technology services, enterprise hardware and printing operations are also in decline.
For April, the research firm said enterprise hardware demand improved while government demand softened.
Lehman Brothers downgraded leading enterprise hardware makers International Business Machines, Sun Microsystems and Hewlett-Packard.
That may change with some of the newcomers in the enterprise hardware business.
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In the enterprise-hardware sector, Banc of America's top pick is Dell, rated at "buy" with a target price of $40.
CB Insights predicts that Internet start-ups will be the hardest hit, because they have attracted more seed money than enterprise and hardware companies but will most likely have a harder time securing follow-up investments.
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