14 DAY TRIAL // Some may know that VMWare decided to buy Nicira, and we wouldn't normally bat an eyelash if it didn't have the potential to cause great ripples.
The sum being huge ($1.26 billion / 1.02 billion Euro) is beside the point. The important matter here is that Nicira makes technology that lets businesses use networking features without costly hardware.
Cisco makes such hardware and didn't use to have a problem keeping a firm grasp on its customers, which are many.
Unfortunately, the weak worldwide economy, coupled with the likelihood of its products becoming less relevant, have placed it in a difficult situation.
That said, Cisco will lay off at least 1,300 people soon, a number that corresponds to 2% of its workforce. The pink slips "are part of a continuous process of simplifying the company, as well as assessing the economic environment in certain parts of the world."