Tuesday, January 20, 2009

Cisco is moving into servers

It was inevitable, margins are shrinking in the router and switch business and they are still quite comfortable in servers and storage. Cisco will be entering the server business and I think they will quickly get into the enterprise storage business also. Silicon Valley Capitalism is entering another phase of creative destruction.

.... companies like Cisco see an opportunity to produce a new, potentially disruptive class of hardware and software management systems that span an entire data center. With customers looking to manage their data centers as a single entity rather than separate units, the world’s largest technology companies must now fight to secure the most prominent, central position possible.

Cisco’s newfound aspirations stretch well beyond the $50 billion server market to include management software and possibly even storage.

“Our vision is, how do we virtualize the entire data center?” Ms. Warrior said. “It is not about a single product. We will have a series of products that enable us to make that transition.”

We are living in interesting times.

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