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November 2, 2009 3:38 PM PST

Report: Cisco, EMC, VMware to announce venture

by Marguerite Reardon
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Cisco Systems, EMC, and VMware are expected to announce this week a new joint venture to sell data center products and services using virtualization technology, according to report in the Wall Street Journal.

The new products called "V-Block" combine EMC's storage equipment with Cisco's new virtualized services and networking equipment along with VMware's virtualization technology.

In September, The Wall Street Journal reported that Cisco and EMC were in talks to form a new services venture code-named Alpine. V-Block may be this same service.

The products will either be sold as an end-to-end solution that companies can install in their own data centers, or customers will have the option of subscribing to a virtualized service, according to reports.

Cisco has been reselling EMC storage gear for years. It also owns a stake in virtualization software company VMware, which operates as a unit of EMC. So it makes sense that the companies would team up on a new services venture.

Earlier this year, Cisco announced a new data center architecture it calls Unified Computing, which includes new virtualized servers. It also includes coordinated support and software integration from partners such as Intel, Microsoft, EMC, and VMware.

Cisco sees the data center market as a multibillion-dollar opportunity. The company anticipates a greater need for storage and high-speed networking within data centers as more services and content come online. Cisco's corporate customers have also begun to virtualize their data centers to make those operations more efficient.

The joint venture will have its own CEO, according to the Journal.

Representatives from Cisco, EMC, and VMware have declined to comment.

The new joint venture is expected to be announced Wednesday before Cisco releases its fiscal first-quarter results.

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
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Add a Comment (Log in or register)
by jabberwolf November 3, 2009 8:00 AM PST
Nice now they can gang rape business 3-way with licensing issues.
Can't wait !!
Reply to this comment
by kaiman75 November 3, 2009 11:35 AM PST
Great! Hopefully Cisco gets so big it just bursts like a balloon...
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About Signal Strength

Marguerite Reardon has been covering the telecom beat for more than a decade and knows more about wireless and IP networking than she cares to admit. She has been a senior writer for CNET News since 2003, covering all things wireless and broadband related from iPhone launches to major telephone company mergers to IPTV developments. She often appears as an expert on news networks, including CNBC, MSNBC, NPR, and the BBC. Maggie loves visiting CNET's headquarters in San Francisco, but she's an East Coaster at heart, living and working in Manhattan.

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