Cisco's Project California A Game Changer? Let's Hope

I'm not quite prepared to say servers once again are "sexy," as this BusinessWeek article implies, but if Cisco Systems' new server is as revolutionary as the industry buzz alleges it is...

Cisco's device, dubbed Project California, takes servers into new territory by cramming computer power into the very box that contains storage capacity and the networking tools that are Cisco's specialty. Demands on data centers are rising as jobs move from PC software to the Internet and customers are looking for more efficient ways to build those data centers. Today companies must cobble together thousands of discrete servers, storage banks, and networking products -- a time-consuming, complex arrangement that often leaves a lot of capacity unused and sends power consumption through the roof.

Cisco's approach could help companies use fewer machines -- saving money not only on hardware, but also on power and IT staffing. Cutting costs is paramount as the demand slump compels companies to slice budgets. San Jose (Calif.)-based Cisco is due to unveil details of the new devices on March 16. 

That, of course, is today. We'll post an update after Cisco CEO John Chambers announces more details. We tried to talk him into making the announcement in a guest post on this blog, but he seemed oddly reticent. CEOs can be weird.

Beyond the implications for the enterprise, Cisco's new box threatens to "disrupt the very structure of a corporate computing market in which Cisco has traditionally acted as a partner rather than competitor to the big server makers," BusinessWeek reports.

For decades there was more than enough room for growth within separate gargantuan niches, letting Cisco focus on the switches and routers that direct network traffic while other manufacturers concentrated on the computers that process and store users' requests. But with the economy in shambles and growth not likely to return for years, tech titans have increasingly been eyeing each other's territory. Project California is a clear sign that Cisco is invading in a big way.

That's a good thing, and here's why: Paradigm shifts force businesses to reconsider how they're doing things. Inevitably, that means reassessing customer needs and striving to meet them. If they fail to, the alternative (in this case) is a one-way ticket to the well-populated tech-company graveyard.

Cisco's new box clearly represents "out of the box" thinking. And that's what tough times call for. If it forces companies like HP and others to revamp their business strategies and respond effectively, the customers will benefit. 

Hmm. Now that I think about it, that really is sexy.