Yes, yes. We've talked about this before here. Cisco is introducing a blade chassis that includes compute capabilities (heretofore referred to as a 'blade server.') It also includes networking, storage and virtualization all wrapped up in a tidy bundle.
So while that looks like a blade server (quack!,) walks like a blade server (quack! quack!) that doesn't mean it's going to be positioned, talked about or sold like a blade server (quack! quack! quack!)
What's my point? What Cisco is building is just another building block of virtualized INFRASTRUCTURE. Necessary infrastructure to ensure control and relevance as their customers' networks morph.
My point is that what Cisco is building is the natural by-product of converged technologies with an approach that deserves attention. It *is* unified computing. It's a solution that includes integrated capabilities that otherwise customers would be responsible for piecing together themselves…and that's one of the biggest problems we have with disruptive innovation today: integration.
While the analysts worry about margin erosion and cannibalizing the ecosystem (which is inevitable as a result of both innovation and consolidation,) this is a great move for Cisco, especially when you recognize that if they didn't do this, the internalization of network and storage layers within the virtualization platforms would otherwise cause them to lose relevance beyond dumb plumbing in virtualized and cloud environments.
Also, let us not forget that one of the beauties of having this "end-to-end" solution from a security perspective is the ability to leverage policy across not only the network, but compute and storage realms also. You can whine (and I have) about the quality of the security functionality offered by Cisco, but the coverage you're going to get with centralized policy that has affinity across the datacenter (and beyond,) iis going to be hard to beat.
(There, I said it…OMG, I'm becoming a fanboy!)
And as far as competency as a "server" vendor, c'mon. Firstly, you can't swing a dead cat without hitting a commoditzed PC architecture that Joe's Crab Shack could market as a solution and besides which, that's what ODM's are for. I'm sure we'll see just as much "buy and ally" with the build as part of this process.
What's the difference between a blade chassis with intel line processors and integrated networking and a switch these days? Not much.
So, what Cisco may lose in margin in the "server" sale, they will by far make up with the value people will pay for with converged compute, network, storage, virtualization, management, VN-Link, the Nexus 1000v, security and the integrated one-stop-shopping you'll get. And if folks want to keep buying their HP's and IBM's, they have that choice, too.
QUACK!
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