Cisco unified computing vs. a zero-capex world

Congratulations to Cisco for decommoditizing a commodity with the introduction of its new Unified Computing System (UCS). The UCS architectural and integration strategy will help Cisco keep its gross margins above 60% while also opening up a vast new market for Cisco. No doubt Dell, HP and IBM will be stiff competition, but in the opinion of yours truly, the real battle will take place between Cisco and a zero-capex world. Sure, Cisco is touting that UCS will reduce capital expenditures (capex) by 20%, but will that "cut the mustard" in a zero-capex world? Me thinks not. It is also my opinion that timing is everything and executing in a zero-capex world will be Cisco's biggest challenge to successfully rolling out its new Unified Computing System:

Cisco UCS Manager uses service profiles to provide automatic, end-to-end configuration of the entire hardware stack: Cisco UCS Manager uses service profiles to support workload mobility through just-in-time, dynamic resource provisioning: Related story: IT spending forecasts spiral further downward Cisco unified computing: Gold's gym for buff CIOs or an assisted living center for CIOs to be taken care of?

What's your opinion, does a zero-capex world spell trouble for Cisco Unified Computing? BradReese.Com Cisco Refurbished Contact: Brad Reese Twitter: Call Toll Free 866-864-0506 or International 850-364-4115

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