mikesd81 writes:
"Business Week has an article about Cisco's new Project California. The new device, dubbed Project California, takes servers into new territory by cramming computer power into the very box that contains storage capacity and the networking tools that are Cisco's specialty. Cisco's approach could help companies use fewer machines--saving money not only on hardware, but also on power and IT staffing-in building data centers. From the article
Project California could also disrupt the very structure of a corporate computing market in which Cisco has traditionally acted as a partner rather than competitor to the big server makers. For decades there was more than enough room for growth within separate gargantuan niches, letting Cisco focus on the switches and routers that direct network traffic while other manufacturers concentrated on the computers that process and store users' requests. But with the economy in shambles and growth not likely to return for years, tech titans have increasingly been eyeing each other's territory. Project California is a clear sign that Cisco is invading in a big way. "They are clearly crossing the Rubicon, and they are now in direct competition with these other large tech companies," says Kevin Johnson, CEO of networking rival Juniper Networks
Cisco is well-girded to take this step. It has more than $30 billion in cash, more than any other tech company. The company is moving into no fewer than 28 different markets, including digital music in the home and public surveillance systems."
