Cisco upgrades servers as it competes with HP, IBM

NEW YORK, April 6 (BestGrowthStock) – Network equipment maker Cisco
Systems Inc (CSCO.O: ) said on Tuesday it was upgrading its
servers, stepping up competition against more established
players in the market like HP and IBM.

Cisco entered the server market last year with its “Unified
Computing System” (UCS), a move that put it in direct
competition with long-time sales partners Hewlett-Packard Co
(HPQ.N: ) and International Business Machines Corp (IBM.N: ).

San Jose, Calif-based Cisco recently said it was unlikely
to renew its resale partnership with HP.

Cisco said the latest upgrade, using new Intel (INTC.O: )
processors and its own new networking chips, would make the
servers more energy efficient, with power savings of around 30
to 50 percent compared to the first generation systems.

David Lawler, vice president in charge of product marketing
in Cisco’s server access and virtualization technology group,
said it currently had over 400 UCS customers and that the
upgrade would help it win more.

“We only started shipping 9 months ago and the amount of
traction… has been tremendous. The second generation is going
to accelerate that,” he said.

With increasing Internet traffic and complex technology
needs, companies have been seeking more simple and
energy-efficient ways to manage data centers — a trend that
Cisco, HP and IBM have been trying to tap with advanced systems
that include storage and virtualization technologies.

“With the economy… customers are much more open to
looking at technologies that are more innovative, that allow
them to drive down their costs,” Lawler said. “When things are
difficult, you look for a way to get the something done with
less.”

Stock Market Advice
(Reporting by Ritsuko Ando; editing by Carol Bishopric)

Cisco upgrades servers as it competes with HP, IBM