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March 16, 2009

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Ken Oestreich

Why now? Two reasons from my perspective:

(1) As you point out, it's a natural adjacent growth market for them, as Chambers said in his opening remarks.

(2) Also, per Cisco's repeated remarks, this is a *differentiated* offering. It's not about selling "blades". Blade vendors who think that's the point are destined to be forced to exit the market. This point of differentiation is that it's about how holistic data centers are managed. And Cisco thinks it can own that space.

Omar Sultan

NiK:

We see a very distinct market transition around virtualization and we see a couple of unmet needs. First, we see a need infrastructure that is designed with virtualization in mind. Remember, the reason we have server virtualization in the first pale is because of the inefficiencies of traditional silo-ed infrastructure and legacy server design. Secondly, and perhaps more importantly, we need a better way to manage all these virtual resources and their inherently dynamic nature. So, the "why now" is because we see right now as the inflection point to go to market with this solution.

Omar Sultan
Cisco

marc farley

Hi Nik, how you doin?

The timing is interesting. The UCS vision is a long ways from being implemented and it's going to take years of work to get there. My guess is that the answer to "why now?" is that this was the earliest Cisco could pull everything together to make a credible story other than "our core business is starting to suck".

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