Cisco launches servers
Over the next few months, Cisco will launch a product that can, without exaggeration, put the global IT industry on its ears and make Cisco a direct competitor to companies like HP and IBM. We are talking about the release of this server with embedded software for virtualization (by the way, Cisco owns 2% of VMware shares). According to analysts, Cisco server can be called one of the most intriguing and most anticipated "iron" new products in 2009. The reaction of HP and IBM is difficult to even imagine. A very serious conflict is possible, to the extent that HP and IBM will launch the production of network equipment under their own brands (the HP ProCurve line can be continued).
As you know, before Cisco specialized in the release of switches and routers. The company felt great in its “native” market. Annual income is $ 40 billion (for comparison, the volume of the global server market is $ 50 billion). This success was achieved not least due to the successful symbiosis with other manufacturers of "iron". There was a tacit contract with HP, IBM, and Dell: Cisco makes network devices, and they do the rest. Now everything will change, writes the NY Times .
Analysts predict Cisco big problems. First, this is the aforementioned conflict with other IT giants. Secondly, in the server market, profitability is much lower than Cisco used to in the network equipment market (25% compared to 65%), so management will have to restructure its business models. However, due to the inclusion of virtualization software in the package, the company can increase the margin to 50%.
Who knows, perhaps in the server market, Cisco will someday be able to achieve the same grandiose success, and someday Cisco servers in data centers and hosting providers will become commonplace.
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via NY Times
As you know, before Cisco specialized in the release of switches and routers. The company felt great in its “native” market. Annual income is $ 40 billion (for comparison, the volume of the global server market is $ 50 billion). This success was achieved not least due to the successful symbiosis with other manufacturers of "iron". There was a tacit contract with HP, IBM, and Dell: Cisco makes network devices, and they do the rest. Now everything will change, writes the NY Times .
Analysts predict Cisco big problems. First, this is the aforementioned conflict with other IT giants. Secondly, in the server market, profitability is much lower than Cisco used to in the network equipment market (25% compared to 65%), so management will have to restructure its business models. However, due to the inclusion of virtualization software in the package, the company can increase the margin to 50%.
Who knows, perhaps in the server market, Cisco will someday be able to achieve the same grandiose success, and someday Cisco servers in data centers and hosting providers will become commonplace.
')
via NY Times
Source: https://habr.com/ru/post/49639/
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