HP-3Com affects prices, rise of the two-tiered data center network

HP-3Com shakeup will drive down prices: The merger between HP and 3Com will push up HP ProCurve far enough to be nipping at Cisco's heels, with Juniper Networks picking up the rear. "We'll now have a market where there are a number of large viable competitors."  "We're going to see a lot more competition, and for folks who do a good job doing competitive sourcing with pricing, they will save a lot of money."

From three to two: "We will see networks evolve," Skorupa said. "Today, typically they're built in three tiers -- core, aggregate and edge -- and the new networks being built will collapse." In an effort to simplify network management, ease troubleshooting and lower costs, networks will fall back to two tiers.

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