Cisco’s (NASDAQ:CSCO) new Unified Computing System (also known as Project California) is a very interesting piece of technology. In a nutshell, what they’re trying to do is reduce and unify all the equipment needed to run a server infrastructure into one box. Server hardware itself, server-attached storage (also known as a SAN or Storage Area Network), and network backbone (routing/switching devices) would all integrate into “blades” that lock into a high-speed backplane. Through this single unified system, they are able to employ virtualization of the actual “server” instances across the smaller and more efficient blades.
They have taken their knowledge in and expertise in networking and used it to create a high-speed switching/routing backplane that is 10 Gigabit-per-second Ethernet capable. Through it, administrators can consolidate the both the local-area network (LAN) connections, SAN, and high-speed clustering connections all into one. Cisco is hoping that by integrating all these devices into one, that it will simply administration and provisioning due to the virtualized nature of the product, reduce costs by consolidating duplicated hardware, increase energy efficiency and lower cooling costs with a unified chassis, among other things. They have also partnered with VMWare (NYSE:VMW), who is already and industry leader in virtualization technologies, for both their press announcement and to help them develop the underlying tech.
So far, I’ve seen mixed reactions from the industry. Traditionally, Cisco has partnered with the major computer manufactures as they had largely complimentary markets and very little overlap. However, this move is a clear indication that Cisco is dropping the gloves and wants to take on the big manufactueres directly. IBM (NASDAQ:IBM), HP (NAQDAQ:HPQ), Dell (NASDAQ:DELL), and Sun Microsystems (NASDAQ:JAVA) are the four major incumbents in this sector, and they might just have something to be worried about. Cisco has a lot of financial resources to invest into this project, and with the economy in it’s current state, companies are always looking for tech that is going to lower their Total Cost of Ownership (or TCO).
Cisco isn’t the only player to get into this market though. Their primary rival in the network room is Juniper Networks (NASDAQ:JNPR), and they announced last month a similar project to integrate the various devices in the data centre together. However, it appears Cisco has a lead on them as far as bringing the product to market. Juniper is taking a slightly different approach, though.. they are actually in talks to partner with the major server manufacturers to bring this technology to market. Juniper has also indicated that it is looking to re-invent a best-of-breed technology in their product, and not necessarily be forced to stick with current tech and standards.
Same technology, but two different approaches. It will be also interesting to see if Cisco’s repositioning and determination to take on the entire project themselves will increase their share of the larger tech market, or if it could weaken their incumbent position on top of the networking sector.
PEER1 Networks employs both best-of-breed Cisco and Juniper networks equipment throughout their network infrastructure.
