Slowdown Right Time for Launch: Cisco

by Manu Sharma    Mar 18, 2009

Cisco Systems, which recently unveiled its Unified Computing System, feels economic slowdown is the right time for the launch of a product or service.

The networking company is targeting the banking and financial institutions (BFSI), call centers, universities, managed outsourced service providers, PSUs (for shared services), and service providers across India.

Talking to CXOtoday, Tata Rao R., senior vice president, system engineering, India & Saarc, said, "Everytime there is a slowdown, Cisco breaks status quo and emerges much stronger in the market. So, irrespective of a slowdown or not, Cisco has been launching new products, going through a market transition, and capitalizing on it. Once the products are out in the market over the next few weeks, we will target the banks, IT companies and service providers."

"We are aware that the recession this time is much deeper and likely to take longer to recover, but we’re not really worried about it," said Rao.

Likewise, teleconference is also getting a boost during the current downturn as players in this nascent field are setting up public telepresence rooms in an effort to help businesses cut costs on travel.

The networking major will be up against IT players like HP, Dell and IBM in the blade server segment.

Andre Smit, managing director, data center sales, admitted as much when he said, "We are designing the new component from ground up. We have partnered with IBM and HP for a long time. In these areas, however, the approach will be very aggressive."

Cisco will base its new class of blades, to be called "Cisco UCS B-Series", on Intel’s Nehlam processors. The blades, previously code-named California, will be able to leverage virtualized memory in a blade chassis that can hold up to 40 blade servers.

Cisco will deliver virtualization through unified computing, an architecture that bridges the silos in the data center into one unified architecture.

With its Unified Computing System, Cisco will provide server, storage and networking systems in a single product. This product can run hundreds of virtual servers on a single machine, said Smit.

The products will be shipped from June this year.

Until now, Cisco sold networking gear, while IBM, HP and Dell sold personal computers, servers, storage systems and software. The new offerings will see Cisco competing with these very same partners.


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