More on Cisco’s market expansion
With its Unified Computing System, Cisco bundles server, storage and networking systems in a single product. Cisco says it can run hundreds of virtual servers on a single machine.
Analysts said the product is the biggest strategic shift in the server market to occur in years. “This is definitely a transformative play,” said James Staten, an analyst at Forrester Research, who attended the Cisco news conference. “This is war and a direct frontal assault on I.B.M. and H.P.”
H.P. has already responded to Cisco’s actions by increasing its investment in networking equipment, Cisco’s core business, and refining its virtualization technology.