Cisco Unveils Unified Computing System, Challenging Big Players in Data Center Market

Strategic Insights -

Cisco Systems, a major player in the networking industry, has made a bold move by introducing its Unified Computing System, a revolutionary solution aimed at transforming data centers into cohesive units. This system marks Cisco's entry into the server market, which has been dominated by IBM and Hewlett-Packard for years. By combining new Cisco networking equipment, blade servers, storage hardware, and virtualization software, the Unified Computing System enables Cisco to offer a comprehensive and integrated solution to customers. Cisco's move is significant, as it expands the company's role beyond networking and allows it to compete for a larger share of spending on data centers.

Key Takeaways:

  • Cisco's Unified Computing System is a server product that optimizes virtualization and combines new Cisco networking equipment, blade servers, storage hardware, and virtualization software.
  • The system addresses the challenge of moving virtual machines between physical computers by providing a flexible and efficient architecture.
  • Partners such as Intel, Microsoft, EMC, and VMware play a crucial role in Cisco's new venture.
  • Cisco believes that its new platform will enable the benefits of virtualization to spread across the data center, creating a more efficient and scalable solution.
  • Analysts predict that Cisco's offering will appeal to high-end customers like financial institutions due to its potential to create a next wave of IT, similar to how servers replaced mainframes.
  • Cisco's entry into the data center market could disrupt the traditional dominance of IBM and Hewlett-Packard.
  • Cisco CEO John Chambers sees the recent rise of virtualization as a key opportunity for the company to expand its role in the data center.

Statistics:

  • Cisco's Unified Computing System is powered by the Intel Nehalem processor and expanded memory.
  • The system has a virtualization-optimized design, which enables seamless deployment and management of virtual machines.
  • Analysts predict that Cisco can capture a significant share of the data center market despite competition from established players like HP and IBM.
  • The system is designed to be highly scalable and flexible, making it suitable for large-scale data centers.
  • Partners like Intel, Microsoft, EMC, and VMware will contribute to the success of Cisco's Unified Computing System.

Sources:

  • Cisco Systems, Press Release, "Cisco Unveils Unified Computing System, Revolutionizing Data Centers"
  • Yankee Group, Report, "Cisco's Unified Computing System: A Revolutionary Shift in Data Center Architecture"
  • Chris Plep, "Cisco's Unified Computing System to Take on HP and IBM"
  • John Markoff, "Cisco's Steps into New Market with Computing System"