How Cisco Intends to Capture the Changing IT Environment

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NEW YORK (TheStreet) –– Cisco is expanding its Unified Computing System (UCS) segment, the one area where the networking equipment giant is seeing significant growth as it looks to capitalize on the changing trends in information technology.

Cisco unveiled the Cisco UCS M-Series Modular Servers for cloud-scale applications, and Cisco UCS Mini for small-scale and enterprise-edge environments, as well as fourth-generation Rack and Blade Servers for application performance. It also introduced new UCS Director solutions to manage "big data" infrastructure workloads.

"Momentum is accelerating at UCS," said Paul Perez, vice president and general manager, Cisco UCS, in an interview with TheStreet. "This is the biggest Cisco announcement to make all year from a tech perspective and the biggest since UCS' inception since 2009."

The Cisco UCS M-Series Modular Server will help businesses operate more effectively with cloud service providers, while the UCS Mini is designed for remote sites, branch offices or smaller IT environments, as mobility plays a greater role in the enterprise.

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In Cisco's fiscal second quarter, data center products revenue rose 30% year over year. The gains were led by the UCS, which unifies computing, networking, solid-state application acceleration technology and systems management into a single integrated architecture. Cisco is capitalizing on that with the new announcements to bolster its lineup of more than 36,500 customers. Perez said Cisco has been adding around 1,000 new customers every month for close to a year. Those customers, in turn, are buying other Cisco products to the tune of about $1 billion.

As more and more devices become connected as the era of the Internet of Everything (IoE) is ushered in, there is a huge level of disruption, and the opportunity to create "trillions of dollars," Perez noted. Cisco is intent on being a part of that.

"IT delivery models are changing, and this new portfolio and refresh to UCS will help grow from $3 billion to many more billions. My goal is to be No. 1 worldwide in the new computing market two years from now."

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--Written by Chris Ciaccia in New York

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