Cisco CEO Chambers: 'I did not want to compete against IBM and HP'

"No sense" in giving HP product plans

So that was less about you and more about their increasing aggressiveness in your market – in your core market?

Well, I think it had to do with the way that we would partner, sharing information was not constructive, in terms of giving them product plans and directions. And, for our existing customers and partners, it made no sense to be doing that.

At the heart of this is Cisco's Unified Computing System. It's tuned toward a segment of the market that understands the data center transition and can afford to make that kind of transition. How do you make it a bigger market opportunity?

The answer is pretty simple. You have to make the first major installations go well. Will most CIOs really look hard at our strategy for virtualization? Absolutely. Will they adopt UCS if the initial couple dozen accounts, the majority of them are really satisfied? Yes, they will. You’ve seen the volumes. We announced the [Nexus] 7000 is growing, year-over-year, at 150%. The 5000s, which are the key elements of implementing UCS, grew at 450%. UCS, in terms of number of customers, is off to a great start. But it's like anything you do. You've got to make your initial pilots, first 50 systems work well. If they do, then I think we're in good shape to get pretty excited about it.

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Topics: HP, cisco, John Chambers
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