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John Chambers Discusses UCS Market Share. WOW!


September 15, 2010 - 6 Comments

Financial analyst conferences tend to be hush-hush events but I’m surprised that no one has picked up on the stunningly strong statements John Chambers made about UCS market traction.  During yesterday’s Cisco Financial Analyst Conference, John made the following public statements about UCS market share:

 

UCS has already taken the #3 market share spot in US/Canada for x86 blade servers.

 

And…

 

Cisco expects UCS to be 50% the market share of the #2 competitor for the worldwide x86 blade server market within the next 2 quarters.

 

Also, during today’s post-FAC industry analyst event, Cisco CFO Frank Calderoni mentioned that we are currently seeing 82% growth for UCS on a quarter over quarter basis.

 

To which I would simply add: Wow!

That’s all I can think of to say given the incredibly fast UCS is enjoying.



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6 Comments

  1. You can't get much more proof in the pudding than what you tell the street. John Chamabers reputation for responsibility in that regard is unassailable.

  2. Jesse, so if I was to say that the blade I built in my basement yesterday is now the #4 blade sold globally would that mean it is? Not to defame Mr Chambers, but as pointed out elsewhere... Many people respected Bernie Madoff and listened to him, and where did that get them? Before anyone can seriously take your words at face value there will need to be proof in the puttin' (any kind of hard #'s).. But then again as you mentioned Cisco doesn't do this, which is very convenient when you look at the context of this conversation..

  3. That's a fair comment but I'd also point out that we continue to see a lot of commercial customers who are adopting UCS not because it is a hosting platform for virtual infrastructure but rather because it offers greater manageability and operational efficiency.

  4. UCS was designed as an optimized hosting platform for virtual infrastructure; the UCS share of VI hosts is the relevant metric. Since only a fraction of servers shipped are deployed as VI hosts, the UCS share of this market is far greater.

  5. First, it is Cisco policy not to guide analyst firms on their market share estimates. This is a cross Cisco policy. Gartner and IDC (and others) are free to estimate our market share but we do guide those estimates beyond what Cisco execs disclose publicly at earnings (and other public events like the Financial Analyst Concference). You are free to track down John Chambers comments from FAC. They were made publicly and and on the record. John Chambers said publicly that Cisco had already taken the #3 spot in the North American (which is defined as US and Canada) blade server market. Since these comments publicly, to attack them is to attack Cisco's credibility in what it reports. Second, he made the claim that we will be 50% of the #2 competitor in two quarters -- which means by the end of FYQ2 [January, Calenday Year 20l])we will have half of the market share of the #2 competitor in the worldwide balde server market. You seem to have some knowledge of who you believe is #2 and what their market share is so you can reverse engineer what that means. I also think it's safe to assume that those market share estimates stay atatic between now and then.

  6. Now I’m confused. I can’t find any data to support Mr. Chambers’ comments, and for Cisco to not even be on the IDC list of worldwide blade server market vendors, it’s a pretty bold statement to say they are going to be in 2nd place (where IBM is at 24.2% as of Q2 2010.) By no means am I casting any dispersions on the credibility of John Chambers and I have no affliation to any of Cisco competitors - I am an independent technology blogger simply stating that IF someone is to make claims that Cisco's UCS has CURRENTLY taken the #3 spot in blade server market share there should be SOME sort of data to support such a fact. All I am asking is that someone show me some analytical data that shows any sort of data on Cisco's blade server sales. If there is, I would love to see it - heck, I'll even blog about it - just show me the data!