Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Cisco Wants to Be a Utility Player: Page 2 of 3

Utility, or on-demand, computing aims to ensure that users pay only for the computing resources they use, removing the expense of paying for redundant data center hardware that is only used on an occasional basis.

Cisco’s says its networking products will be even more closely inter-linked with IBM’s on-demand and HP’s utility computing offerings. For example, there will now be further integration of Cisco’s MDS storage networking products with HP’s Utility Data Center.

Although this should help fill the networking void in utility computing, Borovick warns that moving to a utility model can be a slow process for users. However, she believes that Cisco’s involvement is a positive move: “We now know that a network player is stepping in to help that process.”

However, IBM and HP are not the only companies that Cisco is snuggling up to in the data center space. Others include Intel Corp. (Nasdaq: INTC), Electronic Data Systems Corp. (EDS), and Microsoft Corp. (Nasdaq: MSFT).

By launching the initiative, Cisco is hoping to corner the growing market for data center networking, which is forecast to reach $7 billion by 2007, according to analyst firm IDC.