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Cisco wants to get into servers

by on07 August 2009

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IBM and HP face off



Faced with four straight quarters of falling sales Cisco Systems Chief Executive Officer John Chambers, says that he wants to expand beyond networking equipment into computer servers.

Chambers said revenue this quarter will fall at least 15 percent. To reach his target for annual sales growth of as much as 17 percent, Cisco is pushing into the market for computers used in corporate data centres, where it faces a war with its partner IBM and rival HP.

Demand for Cisco’s routers and switches has gone belly up as Google and Microsoft responded to the recession by cutting back on gear for data centres, the rooms of computers that store information and run Web sites.

To counter that slowdown, Cisco last month began selling its Unified Computing System, a combination of computer servers, storage devices and networking gear. By pushing into data centres they can go to existing customers and they are betting their good name can transfer into other areas.

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