Cisco Systems Inc., the biggest networking-equipment maker in the world, revealed two new lines of servers on Thursday, as demand for the companys machines grows at a 30% annual rate.
The San Jose, California-based tech giant revealed one mainstream server, the M-series, which is aimed at conventional telecoms and ISPs, and an “all-in-one” machine, the Mini, which is designed for smaller businesses or branches, and allows for better micro-management of resources. The UCS (Unified Computing System) Mini is set to become one of the cheaper server systems on the market.
“The competition is going to freak out, because they’re not expecting all of this from us,” Paul Perez, vice president of Cisco’s data center group said for Bloomberg. “Now that we’ve solidified our place in the data center, our goal isn’t just to be the best in blades. It’s to be the best in computing.”
The company entered the highly-competitive server market five years ago. In August this year Cisco announced that quarterly revenue from switching hardware, source of about half the companys earnings, fell by 4%, while routing gear declined by 7%. However, the data center group, which includes the server business of the company, rose by 30% over the same period.
This is how the company, which already sells some rack servers, is expanding its portfolio in an attempt to lure more Web companies and cloud-computing services.
Cisco Systems Inc. was 0.52% down to close at $24.91 per share yesterday, marking a one-year change of +4.80%, and valuing the company at $127.61 billion. According to CNN Money, the 35 analysts offering 12-month price forecasts for Cisco Systems Inc. have a median target of $28.00, with a high estimate of $33.00 and a low estimate of $16.00. The median estimate represents a +12.40% increase from the last price of $24.91.
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