- The IT security market is in ebullition after recent hacks impacting SolarWinds' Network Performance Monitoring software.
- Despite being both a network performance play and a security company, Cisco has not witnessed share price appreciation compared to competitors.
- The market reaction seems irrational in view of the relatively lower impact the SolarWinds' spill-over effect had on Cisco when compared with VMware.
- Also, the company is amid a restructuring plan including a change in CFO and shifting to a software subscription-driven model.
- An investment at this stage makes sense given the potential for rapid growth due to changing market dynamics caused by President-elect Joe Biden's administration.
For further details see:
Cisco: To Benefit From Expanded IT Monitoring And Security Markets