Feeds

Fortune 1000 in Cisco California rush

Sachs survey shines on Cisco

3 Big data security analytics techniques

Are the big companies that Cisco Systems is targeting ready to seriously consider the networking giant as a server provider for their data centers? Apparently so, if you believe the results of a recent survey of Fortune 1000 customers done by investment bank Goldman Sachs.

As part of its launch of the C-Series rack-mounted x64 servers last week - and its plans to build out its sales channel to cover server infrastructure - Padmasree Warrior, Cisco's chief technology officer, picked some juicy statistics that were plucked from Goldman Sachs' 46th IT survey, which polled a hundred IT executives at Fortune 1000 companies to get their views on various technology issues.

Because of banking regulations, you have to go through a process to get a copy of a such a report or even talk to Goldman Sachs employees, and after we jumped through a few hoops, Simona Jankowski, the analyst who put together the GS IT Survey report was able to send it to El Reg for a look-see. One of the key things Jankowski wanted to figure out in the survey is what Fortune 1000 shops were thinking about Cisco's "California" Unified Computing System, which was launched in March and which begins shipping at the end of June.

According to the survey results, almost two-thirds of the IT execs polled said they expected Cisco's servers to gain market share in the data center over the next two to three years. (Of course, considering that Cisco currently has no market share in the server racket today, by definition it would have to gain share.. But you know what Goldman Sachs was trying to ask, which was: Over the next two to three years, will Cisco have a piece of your server budget?)

In that same survey, Hewlett-Packard and Dell were also seen as gaining share, while Sun Microsystems and IBM were predicted as losing share. Jankowski and her colleagues working on the survey report attribute this mainly to a shift towards x64 platforms and away from Unix boxes, and the IBM shift would be due to its relative weakness in blades and ongoing declines in Unix in the coming years. (IBM might have dominant share in Unix, and Unix might be holding up better than x64 servers in recent quarters, but long term, everyone on planet earth would predict that the best that proprietary and Unix platforms could do is just hold revenues more or less steady).

Significantly, of the companies polled by Goldman Sachs, 2 per cent said they are evaluating the UCS boxes right now and another 16 per cent said they would be evaluating it within the next twelve months. Given this, Goldman Sachs is predicting that Cisco will gain about 1 per cent share in the server racket in 2010. It is hard to say how much revenue that might be, but the market will probably be somewhere around $45bn this year, and maybe $47bn in 2010, unless the virtualization crunch really kicks in.

(By my estimates, we're talking about maybe around $500m in server sales for Cisco in 2010, provided it sells maybe 10,000 machines this year and 100,000 machines next year, if you go by Goldman Sachs' 1 per cent figure and you assume the average selling price of the blade server is around $5,000 configured).

Of those companies polled by Goldman Sachs, 38 per cent said they were unsure if they would evaluate the California products in the next twelve months, and 44 per cent said they would not. So even though nearly two-thirds said they expected Cisco to gain some traction in servers in the next two to three years, most shops are taking a wait-and-see attitude. Which is absolutely consistent with the way large IT organizations think and act.

In fact, the amazing thing is how many people said they are kicking the tires or plan to on UCS. That probably has more to do with the relatively small sample and the nature of the Fortune 1000 businesses than anything else. It is important not to confuse the server buying habits of the Fortune 1000 with the world at large - and small, as it were.

SANS - Survey on application security programs

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Inside the Hekaton: SQL Server 2014's database engine deconstructed
Nadella's database sqares the circle of cheap memory vs speed
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.