Yesterday (3/16/2009), Cisco systems announced that they are entering the server market as a part of their Datacenter 3.0 strategy. The new system, codenamed Project California, combines blade servers, storage, routing, and switching all into a single unit, capable of running multiple operating systems through VMware (and perhaps Microsoft’s Hyper-V in the future). The new system will combine these currently separate capabilities into a single unit with the goal of reducing costs, centralizing, and simplifying management and monitoring. Several articles have appeard across the Internet with different takes on the announcement, and Slashdot has also discussed the move today as well. Read more about it at these links:

Slashdot - Cisco barges into the server market

VNUnet - Cisco aims for leadership in the datacenter

Businessweek - Will Cisco’s Project California rock the IT sector

TopNews - Cisco to reveal Project California today

Datamation - Cisco’s Project California - a game changer? Lets hope

IT Business Edge - Cisco to Shakeup Server Market with Project California

Also, one of Cisco’s main competitors, Juniper Networks, has also been working on a similar strategy with its partners. You can read an article describing Juniper’s Stratus Project.

All in all, an interesting time to be in IT!