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pww.comCisco Systems, Inc., RBC Capital Markets - Special Call - NasdaqGS:CSCO

NasdaqGS:CSCO

David W. Yen [Former Senior VP & GM of Data Center Business Group] 💬

David W. Yen, the Former Senior Vice President and General Manager of the Data Center Business Group at Cisco, presented the following points during the RBC Technology Speaker Series Conference Call:

  1. Overview of Cisco’s Data Center Strategy:

    • Cisco addresses different customer segments with varying requirements:
      • Enterprise IT focuses on efficiency.
      • Public cloud operators aim to improve productivity.
      • Cloud interoperability seeks application portability.
      • Massive scale data centers emphasize scalability.
      • Enterprises and government/military prioritize cloud integrity and security.

  2. Product Portfolio:

    • Offers a range of products optimized for modern data centers, including:
      • Nexus 2k: Remote line card for higher-end Nexus 5k and 7k switches.
      • Nexus 5k: Features low latency, non-blocking, and unified ports (Ethernet, Fibre Channel over Ethernet, native Fibre Channel).
      • Nexus 7k: Core switch with industry-leading scalability and density.
      • Nexus 3k: Ultralow latency switch used in massive scale data centers.
      • Nexus 4k: Switches for blade server systems, including those of IBM and Hewlett-Packard.
      • Nexus 1000 or 1k: Hypervisor-independent virtual switch.
      • MDS 9000 series: Industry-leading Fibre Channel direct-to-class product.

  3. Data Center Fabric Solutions:

    • Supports converged fabric technology, including FCoE, which Cisco invented in 2004.
    • Provides solutions tailored to different data center sizes:
      • Smaller data centers typically deploy traditional multi-tiered tree-like structures.
      • Larger data centers can utilize Cisco's FEX technology for scalability without adding additional tiers.
      • For data centers with 10,000 servers or more, a 2-tier equal-cost multipath architecture using FabricPath technology offers non-blocking traffic and deterministic delay.

  4. Unified Computing System (UCS):

    • Introduced in 2009, UCS integrates computing, networking, and storage.
    • Features a well-architected switching infrastructure with Fabric Extender and Fabric Interconnect components.
    • UCS Manager software automates the configuration and provisioning of compute, networking, and storage resources.
    • Supports vertical integration with various applications and software partners (e.g., Vblock with EMC, FlexPod with NetApp).

  5. Virtualization and Software-Defined Networking (SDN):

    • Nexus 1000V is a mature, hypervisor-independent virtual switch with over 3,000 customers.
    • Cisco addresses the need for SDN through various requirements, including optimizing data flows, simplifying resource management, and achieving agility.

  6. Market Position:

    • Cisco leads the data center switching market with over 75% market share, especially in the 10 GigE space.
    • UCS has achieved over 11,000 customers and gained #3 market share worldwide in the x86 blade server market.

  7. Customer Value Proposition:

    • Cisco aims to address customer needs through innovation while leveraging existing investments.
    • Offers a complete value proposition from provisioning and orchestration to application automation and self-service portals.

  8. Future Directions:

    • Continues to work on hardware improvements and software enhancements for network management.
    • Focuses on interaction and interconnection between servers, switching networks, and storage networks.

  9. Competitive Landscape:

    • Differentiates Cisco’s approach from Juniper’s QFabric, emphasizing the importance of incremental innovation and leveraging existing investments.
    • Discusses the importance of addressing customer concerns about network reliability and support.

  10. Go-to-Market Strategy:

    • Addresses concerns about cannibalizing the market by emphasizing the growth in networking demand and the evolving nature of data center architectures.
    • Highlights the strong correlation between UCS and Nexus switching customers, suggesting potential for cross-selling and integration opportunities.

  11. Importance of Fabric Networking:

    • Considers fabric networking highly important, ranking it as a key focus area for Cisco, aligned with the company’s strategic priorities.

David W. Yen's presentation emphasized Cisco's comprehensive approach to data center technologies, focusing on customer-centric innovation and a holistic value proposition.

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