For years, tech giant Cisco has produced components that hummed along inside legions of PCs. Last week, everything changed. Company officials announced their plans to begin manufacturing servers to compete in a market which is valued at $50 billion. Some analysts worry that this move will erode Cisco’s traditionally high profit margins and fracture longstanding business relationships with Hewlett-Packard and IBM. Other analysts suggest the rapid technology changes, especially in virtualization software, means tech heavyweights may soon all be competing for the same business.

Cisco plans to be at the forefront of changes brought about through virtualization which means it will introduce a ‘series of products’.

All of this new product design and increased market competition means companies will be looking for agencies to help them increase market share.

Have you talked with your clients about the changes coming in the server market?

[Source: Vance, Ashlee. “Cisco Plans Big Push into Server Market,” New York Times, 01.20.09]