Networking giant Cisco is preparing to enter the server market, putting it on a collision course with traditional partners like Dell, HP and IBM.
Cisco will release a server with bundled virtualisation software within months, The New York Times reports today. Currently, Cisco’s core business revolves around its domination of the $US40 billion market in routers and switches, which control network pipes and are complementary to servers.
But slowing router business has already seen the company diversify into new product lines.
Last year, Cisco ramped up its unified communications and collaboration software offerings, putting it head-to-head with Microsoft, a former partner in the space.
Rivals had no immediate comment, but the three largest players in the $US50 billion server market – Dell, HP and IBM – may position themselves to offer more business to Cisco’s key competitor, the smaller Juniper Networks, as well as pumping up their in-house initiatives, such as HP’s ProCurve line of routers.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MARKET CLOSE: Shares mixed as Xero, Orion fall, F&P gains on earnings outlook
- NBR Radio head-to-head: Fed Farmers and SAFE on abused bobby calves
- Christchurch's City Care arm on the block
- First-half profit fall for newly NXT-listed G3
- Fonterra strikes deal with Bellamy's to make organic infant formula
Most listened to
- Who are the winners and losers in Labour's re-shuffle? Rob Hosking explains
- Head-to-head: Federated Farmers director Katie Milne and SAFE executive director Hans kriek debate dairy industry's treatment of bobby calves
- Full Flavour managing director Jesse Archer says Ultra Fast Fibre gave him the "two fingered salute"
- Sally Lindsay and Chris Hutching talk about the latest in property news in Property Talk
- Keep Our Assets Murray Horton on Christchurch Council asset sales