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Cisco Systems

Cisco Plans Bold Move Into Server Business, Enters Arena With HP And IBM

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According to the NY Times, Cisco Systems is planning a big push into the server market, essentially entering into competition with its historical partners HP and IBM (who declined to comment on the story).

A risky move for Cisco, but a very interesting one.

The product — a server computer equipped with sophisticated virtualization software — is a bold but risky move by Cisco into an unfamiliar, intensely competitive market that typically produces far lower profits than Cisco makes from network gear. But it reflects the company’s ambition to grow beyond its roots as the so-called plumber of the Internet to offer everything from instant messaging software to digital stereos.

As The Register points out, VMware technology is likely the foundation of the virtualization part, since Cisco still owns part of the company (about 2%). Cisco is not disclosing any specifics though, but the NY Times learned that Cisco could show off the first of its new systems as early as March.

Acquisition rumors between Cisco Systems and VMware (and even EMC in full) are sure to flare up again.

A good follow-up article was published on Forbes.

Cisco Partners With VMware For Its MDS SANs

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As part of its Data Center 3.0 strategy, Cisco is collaborating with VMware to deliver a tested and validated solution for Cisco MDS storage area networks (SANs) designed specifically to help customers improve the security, scalability and management of storage networks attached to VMware environments. The Cisco vision for Data Center 3.0 entails the real-time, dynamic orchestration of infrastructure services from shared pools of virtualized server, storage and network resources, while optimizing application performance, service levels, efficiency and collaboration.

The combined solution of Cisco MDS SANs with VMware’s Virtual Datacenter OS (VDC-OS) helps customers to more easily implement storage consolidation, disaster recovery, business continuity and storage backup solutions, as well as improve the visibility, security, and traffic isolation of applications.

VMware provides this functionality as part of the VDC-OS, which increases ROI while enabling the flexibility customers need to build next-generation data centers that are highly elastic, self-managing and self-healing. Cisco MDS SANs can now be virtual machine-optimized, delivering a resilient, high-performance fabric to support large, dense virtual environments by providing consistent policy, visibility, and diagnostics for virtual machines across the data center.

Cisco SANs optimized by VMware provide security, mobility, performance monitoring and capacity planning at the virtual machine level, enabling IT managers to better monitor, manage, and scale SAN-attached virtual machines. For example, IT managers can now move, add or change servers without reconfiguring SAN switches or storage arrays, and servers can retain their SAN identity even when moved or replaced in the server chassis.

Cisco and VMware also jointly offer virtualization consulting services to help customers create and deploy server, network and storage virtualization solutions that can reduce cost by provisioning new applications quickly and more safely, while maintaining high levels of application performance.

Cisco Ups Stake In VMware

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Cisco announced yesterday that it will acquire an increased equity stake in VMware.

Cisco will purchase 500,000 shares of VMware Class A common stock currently held by Intel for approximately $13.3M. Upon closing of the investment, Cisco will own approximately 1.7% percent of VMware’s total outstanding common stock.

Cisco’s purchase is intended to build on the strong inter-company collaboration between Cisco and VMware in the adoption of the companies’ virtualization products and solutions that address the intersection of virtualization and networking technologies.

In September, 2008, Cisco and VMware announced several joint initiatives in the data center virtualization market including the launch of the The Cisco Nexus® 1000V distributed virtual software switch, enhanced professional services and reseller certification training

Cisco Teams Up With QLogic to Offer End-to-End Virtualization Technology

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QLogic today announced it has set up a partnership with Cisco to offer end-to-end virtualization technology, using Qlogic adapters that allow end-users to realize the benefits of quality of service capabilities in standards-based virtual fabric environments. Virtual fabrics provide storage administrators with an industry-standard method for improving storage area network or SAN security, scalability and performance by segmenting physical SANs into multiple virtual SANs.

Qlogic said its quality of service capability enables IT administrators to tie virtual machines to virtualized fabric environments such as Cisco VSANs using NPIV technology, which has been enabled in QLogic adapters since 2006.

Cisco Systems

There We Go Again: EMC Shares Rise On Acquisition Rumors

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This is one rumor that just keeps coming back: Reuters is reporting that EMC shares rose as much as 6.3 percent yesterday on market speculation that the world’s largest maker of corporate storage equipment could be acquired. The company stills holds a majority stake in virtualization juggernaut VMware.

Shares of EMC rose as high as $14.92 in trade on the New York Stock Exchange, before retreating to $14.75 in afternoon trading.

EMC spokesman Dave Farmer declined to comment, saying the company never responds to market rumors or speculation. Pacific Growth Equities analyst Kaushik Roy said the most likely company to be interested in buying EMC would be Cisco Systems. Last May, we reported on rumors of a possible merger.

A popular phrase says there is fire where there is smoke, but we’re getting a bit skeptical. These rumors have been floating for years now, and although a Cisco-EMC combo would seem like a pretty logical combination, you can ask yourself if it why a deal would be in the works now, when a merger or full acquisition should have already happened if both companies and their shareholders agreed.

EMC Corporation

Cisco Systems

Cisco’s John McCool Talks Virtualization

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NetworkWorld published a great interview yesterday with John McCool, senior VP of data center, switching and security at Cisco. McCool sees a great future for virtualization around the company’s most successful product in its entire history, the Catalyst 6500 (and its successor, the Nexus 7000 Series, which was recently unveiled), combined with its own forray into virtualizing the data center with its Data Center 3.0 initiative.

A small excerpt:

What other areas are investment priorities?

Virtualizing services in the branch by centralizing those services in the data center. That’s a trend that’s here to stay. [Application Control Engine] and applications embedded into the network infrastructure would be another area that we’ll continue to drive very heavily.

Do you plan to take virtualization above the network to the server or application level?

You see a component of that already in Unified I/O. So the I/O component, really virtualizing that over a single connection to the network, is very fundamental. And then being able to split that out further in the networking device. That’s getting ingrained in the architecture of the data center, very much touching the connection to the server itself.

Do you plan to invest in another hypervisor vendor, similar to your relationship with VMware?

No announcements to date. We’re continuing to work with all the hypervisor vendors. We are interested in virtualized data centers and to the extent that hypervisor and virtualized servers exist in the data center we think that’s a very powerful construct for customers and one that’s going to take network support.

Read the rest of the interview here.

[Source: Cisco Blogs]

Cisco Systems