Cisco's entry today into the server market with its Unified Computing System brings it one step closer to realizing its Data Center 3.0 vision.  Besides extending the concept of virtualization to create pools of shared memory, storage and compute engine resources, the UCS also scales the number of network connections with which any given set of processors or applications can interface.   Its new UCS B-Series blades are based on Intel Nehalem processor families and offer extended memory to support applications with large data sets and  significantly more virtual machines per server. In addition, its UCS Manager provides embedded device management.  These servers also provide support for a unified fabric that includes LANs, SANs, and HPC networks with lower cooling requirements and power consumption such as servers offered by HP and IBM.  Bottom line,  Cisco promises that its UCS will require fewer switches, servers and management points, lower CAPEX and OPEX, and deliver faster deployments for new servers.

The introduction of Cisco's long-awaited California server announcement has created excitement in the market, and Cisco has partnered with strategic partners such as EMC, VMware, Microsoft, BMC and Accenture to enter this market.   Target customers include xSPs, financial services accounts, and forward-looking enterprises with over 1,000 x86 servers.  Some may be hesitant, however, to leave server vendors like HP and IBM who have surrounded their customers with knowledgeable local and remote support resources  for years, and who have developed  knowledge databases that provide quick response in times of a hot site.  Nonetheless, since Cisco has no installed base to migrate and does not plan to roll out in volume initially, it can focus its attention and resources on making its initial sites successful while building its support organization's expertise in the new products.

While Cisco may have strained some relationships by entering this market, it has opened the doors for bigger opportunities in the future.  Moreover, Cisco itself has pointed out that times of transition bring changes to the market, and technology companies continue to find new partners and new ways to partner with competitors to grow their markets.