The New York Times reported this week that Cisco will be entering the lucrative $50 billion server market. And the gist of the story is that it may create an IT war with established partners such as HP, Dell and IBM.
I’m sure that Web hosting companies and data center operators are seeing this much differently.
For one thing another vendor and major manufacturer likely means that pricing will become more competitive and opportunities for saving money will be realized. Because these servers will be equipped with virtualization software, one of the biggest IT trends we've seen in the past few years, savings in resources and time will be achieved not to mention improved efficiency in the data center. So Cisco sees the opportunity, understands the risk and gets the Internet world, plus they are flush with cash. It makes perfect sense.
I listened to a podcast featuring Robert Lloyd, Cisco SVP for US, Canada and Japan, about running a business successfully in an economic downturn. He gets it. "You prioritize exactly where the growth opportunities are. You prioritize how you can shift resources today towards those opportunities. You prioritize how your strategy needs to be reinforced. Or maybe double-down in those areas that just make sense. And you don't get distracted with the view that everything's about cutting."
So if there's going to be a war among the tech titans for each other's customers, it's just business. Call it Darwinian survival of the fittest, if you must. It's just a great company, making a sound decision and taking advantage of solid market opportunity. We all have our priorities.
Web hosts appear to be ahead of the marketing curve
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