COMMENT ON A TWEET #22: CAN CISCO RESPOND TO VMWARE?

COMMENT ON A TWEET #22: CAN CISCO RESPOND TO VMWARE?

Matt HealeyTuesday,12 March 2013

The Snap

Tweet: “@leedoyle_dc: VMware Network Virtualization Speeds Service Delivery at NaviSite | Virtual-Strategy Magazine http://t.co/PSpHpa0GaI via @po_st”

The Download

VMware was able to redefine the server architecture with their software. This reduced the number servers that enterprises needed to buy and put pressure on the server vendors. They are now turning their attention to the networking space by moving into network virtualization and SDN. They purchased Nicira last year and while they may have overpaid for it, the technology was generally considered solid. They had a good list of clients including Rackspace, EBay, and Fidelity. This announcement shows that VMware is continuing to expand their footprint into networking virtualization. The question is will the network vendors be better at responding to networking virtualization than the server vendors were are responding to server virtualization? Specifically, will Cisco, the largest networking vendor be able to respond? In general Cisco is a well run company that has responded to threats quite well. But I suspect that this one is different because the threat is not another HW provider. Cisco has a good playbook on how to respond to that. This is a SW provider that can change the entire market. Move from a HW defined market to a SW defined market. From what I have seen, Cisco does not have a good playbook on how to face this threat nor do they have a solid understanding of how to compete in a SW market. They are an excellent HW provider, but I question if they can change to a SW provider.

Hat Tips

@leedoyle_dc, Nicira

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