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March 17, 2009

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Ken Oestreich

Good observations and rationale! Two things to point out:

(1) the technology segment they claim to be creating is actually an old one. Fabric computing-based blades (or call it what you may) are already being sold by HP, IBM and Egenera.

(2) Cisco had to enter this market because the real value of CPUs is unleashed when their network & I/O are virtualized, converged and centrally managed.... roughly analogous to the value created when applications and O/Ss are virtualized and managed. This is Cisco's way of naturally going "up-stack". If they didn't try to own it, someone else would begin to try to go "down stack".

Jennifer Geisler

I just wanted to make a quick comment on your point about the next-gen data center being held back by resource utilization and a lack of mobility/agility.

At Cisco, our strategy is to bring transparency to virtualization. When data center resources are connected over an intelligent, unified network fabric, things that were previously invisible become visible. In today's data center infrastructure, compute, virtualization, network -- and even communications -- resources are separate 'islands", and each island has a different perspective on virtualization. Cisco's unique value is at the intersection; only the network can bring transparency and visibility across the data center 'islands' to enable automation and dynamic provisioning across the data center infrastructure.

Jennifer Geisler, Manager of Network Systems Networking and Switching for Cisco

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