Why do customers pay a premium for Cisco? My research shows that Cisco owns about 75% of switching share but only about 55% of port share, showing Cisco’s obvious revenue per port advantage over everyone else. Why does this discrepancy exist? I know some of you will disagree with this, but in general, customers pay up for Cisco infrastructure because it does more stuff faster than competitive products.
One good example of this is the evolution of power over Ethernet (PoE). Years before the PoE standards were ratified, Cisco rolled out its own version of PoE that gave customers PoE capabilities, while the rest of the industry was arguing in the standards bodies. Cisco got a huge, early-mover advantage by having a solution two years ahead of the field. Then, when the standard was ratified, Cisco supported it.
Cisco has maintained this advantage as remains the only vendor with 60W POE today. There are many, many examples of this. EIGRP is a faster, better protocol than RIP; for years Skinny had more features than SIP; EtherChannel was great for port aggregation, and the list goes on. Some vendors scream “vendor lock in” and “proprietary,” but the fact is that Cisco supports all the standards. But customers prefer the Cisco version since it does more.