HP and Cisco’s kung-fu bout for the data centre is a non-event
You see, Cisco’s corporate fighting style is ‘the art of fighting, without fighting’. Believe me, it sounds far more epic when Brue Lee delivers that line… Anyhow, there seems to be a lot of noise of late about Cisco and HP going toe to toe in the server market. HP has likened Cisco to plumbers and Cisco in return has embraced their inner Mario, with a somewhat bizarre post on how cool plumbers are in the Netherlands. Meanwhile, bloggers are having a field day and talking the whole thing up. I expect Don King to get involved shortly.
Seriously though, as Christofer Hoff suggests, I think the point has been largely missed. Cisco will not try to enter the server market in the traditional way, they would get smashed. HP and other server vendors are simply too big, too strong and it would not be a profitable exercise. Rather, Cisco will try to develop the data centre using virtualisation into something new, something different; something that they can dominate. Their vision as I see it, is to have a generic chassis with a processing blade, an interface blade and a storage blade. The application services, network services and storage services will all be virtualised software and abstracted from the hardware. This is the ultimate vision in virtualisation and Cisco’s heavy investment in VMware gives some support to this predictive claim.
Disrupting the data centre market is essential for Cisco to win major market share. So called battles for market share, where Cisco release a traditional blade server, are far too costly. Cisco’s strategic management have listened to Bruce – disruptive innovation is the art of fighting without fighting. I have previously commented on how Cisco are using FCoE as a technology to cultivate a new unique market for data centre switches. However, this is only the beginning. Expect the winner to be the one that changes to rules of the game altogether.

