Networks vs. Servers: The truce has ended, war is coming
It is interesting to note that the computing and the networking industry is now starting to compete openly in each other’s backyard.
HP started going after networking aggressively in 2005, and it’s Procurve business unit has been growing faster then the overall networking market and has been slowly taking away Cisco market share. Further, on Feb 18, 2009, HP announced the formation of a business unit to consolidate it’s telecommunications and media products. The new unit will be called HP Communications and Media Solutions (CMS).
Cisco has stated its intention to aggressively go after virtualizing the entire datacenter (including computing and networking) and is expected to announce a virtualization-enabled blade system this spring. According to the trade press – the new blade system is code-named “California”. There is also rumors of friction between IBM and Cisco as Cisco’s actions put serious strain Cisco-IBM channel partnerships.
This will change the landscape for many virtualization and utility computing oriented startups. This war is expected to result in a price war for networking equipment and blade systems. This will also result in significant industry consolidation.