Cisco to Soon Unveil Data Center Strategy

Following months of speculation, network equipment provider Cisco Systems ( announced on Monday it will unveil a week from today its new strategy to help customers build more efficient data centers.

The customer confirmed in January it would enter the server market, and in doing so, potentially steal some of the lucrative market share from competitors like Hewlett-Packard and IBM.

Media reports have said that Cisco plans to sell computer servers bundled with virtualization software by VMWare, following Cisco's announcement last year that it had a $150-million stake in the server virtualization software developer.

Until March 16th, Cisco is keeping their mouths shut about the details regarding the data center strategy.

However, a company spokesperson says that the announcement would be related to the speculation

In the upcoming announcement, Cisco CEO John Chambers and other key executives will unveil new technology and partnerships, the company says.

Industry analysts have long speculated the company has been working on a new server product designed for data centers.

The company has traditionally offered products and services for routers and switches.

However, as the momentum of this core business continues to wind down, Cisco has shifted its focus to a wider range of products and services.

Cisco's expansion into unified communications systems, which aligns email, phones and other tools over web networks, has already led to greater competition with Microsoft.

In January, the company announced it is working with service providers including Terremark, StrataScale and The Planet to and help develop next-generation virtualized data centers achieve greater operational and energy efficiency.

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