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Summary:

It’s nice to see The New York Times and others finally catching up to us by reporting that Cisco Systems is working on a new kind of server. We first reported the development of these new servers back in March 2008, essentially a lifetime on the […]

It’s nice to see The New York Times and others finally catching up to us by reporting that Cisco Systems is working on a new kind of server. We first reported the development of these new servers back in March 2008, essentially a lifetime on the web, which has short memories but (almost) everlasting links. There aren’t any new details in the story except why virtualization is the driving force behind Cisco’s moves.

The Times does a good job of summing up the facts of what we have been reporting all along: Cisco is pretty serious about the data centers. One takeaway: Cisco can gobble up VMware or EMC or both, if it wants to. Of course, those deals have been rumored as well.

When it comes to the server market, the San Jose, Calif.-based router maker is in for hand-to-hand combat. It faces a bloody battle against IBM, Hewlett Packard and Dell, who are all used to making a living off lower-margin boxes. I am not sure Cisco would be able to command a premium in this market, however fancy its products might get. HP and Dell are making strides against Cisco in the enterprise when it comes to lower-cost networking gear.

“There will be massive competitive reactions from both IBM and HP, and we expect this will lead to a new wave of industry consolidation,” Brent Bracelin, an analyst for Pacific Crest Securities, told The New York Times; he believes this will help Cisco rivals Juniper Networks and Brocade.

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  1. I wonder why nobody mentions the rumours regarding kvm in the new Cisco WAAS 4.1 appliance …

  2. The Cruft Of My Brain » Cisco Servers? Seriously? Tuesday, January 20, 2009

    [...] I’m having a hard time with this being a smart move but I can see the reasoning.  Om posted about the latest rumors today and I think he hits on some important [...]

  3. John Earnhardt Tuesday, January 20, 2009

    Om:

    Our CTO, Padmasree Warrior, wrote a blog piece late yesterday on “unified computing” which states, in part: “Lately, there has been a lot of speculation by the technorati that “something is going on over at Cisco!” I am sure you have all read the blogs and reports in traditional media asserting that Cisco is going to enter new markets, compete for new business, and build new products. The answer? Yes, Yes and Yes, of course!”

    See full blog post here: http://blogs.cisco.com/news/comments/introducing_unified_computing_to_the_data_center/

  4. Thomas Whitney Tuesday, January 20, 2009

    The most interesting aspect here is that there are ongoing technological advancements even with the eoonomy being less than stellar. My main hope is that in the midst of this growth that digital security is held in the highest of importance.

  5. Kaiyzen – The Art of Continual Improvement Wednesday, January 21, 2009

    [...] Lost of noise today around Cisco entering the server market, some here and here. [...]

  6. Cisco’s bold move to own the cloud computing infrastructure « Yet Another VC Blog Wednesday, January 21, 2009

    [...] With Servers, Now Cisco Fights Partners [...]

  7. Details about this have been bouncing around quite a bit lately. Sounds like it’ll be a blade-server in a Nexus chassis (so integrated networking), with some advanced/expanded memory management (via memory daughter card) and enhancements to QoS that will extended up the Application layer (as far as VMware can see). Yes, it’ll be a channel / partner conflict nightmare, but where else is Cisco going to find their next $1-5B/yr market…..surely you don’t think it’ll be in consumer, do you?

    btw – CTO Warrior had nothing to do with this. It was done by the Nuova team, which is back in charge of Cisco again (Mario, Prem, Luca, etc.).

  8. Networks vs. Servers: The truce has ended, war is coming | Tech Sanity Check | TechRepublic.com Monday, February 16, 2009

    [...] Cisco, this is one of the worst-kept secrets in the technology business. ZDNet, The New York Times, GigaOm, The Register, Bloomberg, Network World, and lots of other publications have recently written about [...]

  9. Between the Lines mobile edition Monday, February 16, 2009

    [...] Cisco, this is one of the worst-kept secrets in the technology business. ZDNet, The New York Times, GigaOm, The Register, Bloomberg, Network World, and lots of other publications have recently written about [...]

  10. With a New Server, Cisco Pushes “Comm-puting” Strategy Sunday, March 15, 2009

    [...] a substantial investment in VMWare.The introduction of its servers — a move that is likely to put Cisco in conflict with partners such as IBM, HP and others — is part of an ongoing effort at Cisco to find new revenue opportunities that go beyond [...]

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