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competition

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

January 20, 2009 by Robin Wauters 1 Comment

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.

Filed Under: Featured Tagged With: Cisco, Cisco Systems, competition, data center, Hewlett Packard, HP, IBM, move, server, server business, server market, transition, virtualisation, virtualization, vmware

Research and Markets’ Latest Report: “Vendor Landscape: Virtualization Competition Heats Up”

January 19, 2009 by Robin Wauters Leave a Comment

Via VMBlog comes word of a new report from Research and Markets titled: “Vendor Landscape: Virtualization Competition Heats Up”:

“VMware retains its leadership position in this updated vendor landscape of virtualization software. However, the virtualization market has seen greatly increased competition in 2008. Microsoft has emerged as a legitimate competitor through its release of the Hyper-V hypervisor and Citrix has stormed onto the scene with its acquisition of XenSource.

This research note provides an overview of the x86 server virtualization landscape and addresses how the vendors meet the following key selection criteria:

-Vendor and product maturity.
-Advanced features and suitability for a utility infrastructure.
-Cost of licensing.

VMware remains in the leadership zone due to its market share and continued innovation toward comprehensive data center virtualization. However, where VMware was the only game in town a few short years ago, now the competition has become serious. Going into 2009, expect continued feature innovation and pressure on pricing. ”

Filed Under: Uncategorized Tagged With: competition, report, research, Research and Markets, study, Vendor Landscape: Virtualization Competition Heats Up, virtualisation, virtualization, virtualization competition, vmware

VMWare’s Mike DiPetrillo Openly Critical About Citrix – Xensource

February 15, 2008 by Robin Wauters 1 Comment

If you thought the leaked internal VMWare memo criticizing the partnership between Microsoft and Citrix was bad, get a load of this: Mike DiPetrillo, Specialist System Engineer of Industry Research and Competitive Analysis at VMWare (VMW) and one of VMWare’s bloggers, posted a rather critical blog post on his personal space yesterday attacking Citrix’ acquisition of Xensource.

Other than calling Xensource a ‘good little company’, DiPetrillo says he’s still trying to figure out why Citrix paid $ 500 million for it in the first place.

“In Q3 XenSource announced 1,000 customers. On the call they said they added another 400 customers. Good growth! That puts the total at 1,400 customers. Then came the partner count – 1,817 partners certified to sell XenSource. Hmmm. So now we have 1,817 partners trying to get business from the 1,400 customers that total $2 million in revenue (that’s $1,100 in revenue per partner). Good days to be a Citrix partner.”

He goes on to say:

“OK. So the strategy is go and spend $500 million on a company that’s losing money, switch all of your current successful products and branding over to the losing company, and then exit the market when your larger partner moves into the market. Is this the end of Citrix then? Terminal Services in Windows Server 2008 closes the gap pretty nicely. Virtual Desktops are also taking large chunks of market share. Time will tell where Citrix ends up.”

In the end, it’s fair critiscm and DiPetrillo does raise some good points, but coming from a VMWare employee (although published on his personal blog), the article is bound to make some people frown.

[Via Channel Marker]

Technorati Tags: virtualization, virtualisation, xensource, citrix, vmware, competition, criticism, Mike DiPetrillo

Company Index: VMWare

Filed Under: Acquisitions, Featured, News, People Tagged With: blog, citrix, competition, criticism, Mike DiPetrillo, virtualisation, virtualization, vmware, xensource

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