Are you keeping up with the tech news? There are some interesting things happening out there in the midst of a broken economy. IBM is looking to pick up Sun – whether or not you are in this market or not, there are a lot UNIX servers being sold out there; it’s not all Microsoft. Can IBM resurrect some of the momentum SUN had in the late 90s? The more interesting news is Cisco’s entre into the server market. If you recall a Fortune magazine article last fall detailing Cisco’s data center strategy, selling enormous switches with a green side to them, this is the next step. To be honest, I was expecting a storage acquisition by now, leveraging Cisco’s SAN switch technology. I’m certain this is next. While it may sound to some like Novell buying Wordperfect, I think there’s more to this. A recent Harvard Review article provides some insight on what may be happening here:
- 1. Taking control of future cloud computing resources
- 2. Building a compliant infrastructure in expectation of new “green” legislation
- 3. Redefining data storage and server capabilities as part of the network (Something SUN tried to do from the server side, but never actually succeeded on)
- 4. Positioning for a more mobile and lightweight computing world that will better serve minis, iphones, and other PDA type technology.
I recommend the Harvard Review article: http://blogs.harvardbusiness.org/sviokla/2009/03/does_cisco_have_its_head_in_th.html
But wait! There’s another side of this. These companies are expanding their brand and foot print while others are wallowing in economic depression. They are cutting wasteful spending while spending strategically to grow their brand. This is part of the downturn strategy. When things do finally turn around, these companies will have new offerings ready to go, a brand that’s remembered, and cash in the bank to restart their momentum.