With all the recent announcements, we wonder what kind of a company Cisco has evolved into? They seem to want to provide a solution to every conceivable IT market segment. This morning I heard a KCBS radio commercial about Cisco delivering movies over a private network in a dentist’s office. Later today, I read in the NY Times that Cisco and EMC have formed a joint venture to pursue the data center market for large business (see text below).
This afternoon, I attended a Telecom Council session where Cisco Sr VP Kelly Ahuja talked about the explosive growth the company expects from the mobile Internet. Their big play in this area has to be the acquisition of Starent Networks for $3B- a prominent wireless packet core vendor. For more on the Starent acquistion see:
For sure, Cisco is drifting far away from their flagship multi-protocol/IP routing and Ethernet switching roots. Last week they acquired an Internet security firm. It appears Cisco is transforming itself into an amalgamation of many different companies. They want to be an Internet software company (Web Wx, Internet security), consumer electronics company for the connected home, cable and satellite TV set top box provider, video conferencing for business.
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NY Times: Cisco and EMC Form Venture to Serve Data Centers
Cisco Systems took another step to expand its computer hardware businesses on Tuesday by forming a broad partnership with EMC, a maker of storage equipment and software. The two companies announced on Tuesday that they had created a joint venture called Acadia that would work to sell their data center equipment to businesses. The new venture will focus on designing and building systems that rely on virtualization technology, which can help customers create a more flexible technology infrastructure and lower their capital spending costs. For Cisco, the arrangement should aid the company’s efforts to sell its nascent line of computer servers and increase competition against the likes of Hewlett-Packard, I.B.M. and Dell.
Cisco has long been the dominant supplier of networking equipment like switches and routers for corporate data centers. But, earlier this year, the company expanded into the computer server market as well, placing it in direct competition with traditional partners like H.P. and I.B.M.