Not many data center companies have the opportunity to make a history. And a fewer number of them have the opportunity of repeating it. However, the sign points to the fact that the sector may witness a history repeating itself with Cisco (NASDAQ:CSCO) having completed its acquisition of JouleX.
The market share of the data center sector remains the preserve of Cisco, Hewlett-Packard (NYSE:HPQ), Juniper (NYSE:JNPR), and Alcatel-Lucent (NYSE:ALU). However, the acquisition of JouleX with its innovative solutions may enable Cisco to have a very good opportunity of repeating history in the data center market. You will remember that Cisco entered the market in 2009 as a small cat that wanted to hunt in the same forest as a lion. However, Cisco has been able to corner a substantial part of the market share. If the company efficiently utilizes the solutions that accompany the new acquisition, you can be certain that it will make a 6% improvement in its revenues and grab a larger share of the data center market.
The acquisition of a data center company is not a big deal. Such an event has taken place in the past. But the present one promises to change most ideas about the concept of data centers. The announcement of the completion of the acquisition this week is one of the factors that could see Cisco continuing a journey in the bullish trend.
In hard terms, JouleX will bring the solutions that reduce the energy and the consumption of an entire organization on a network. Its Data Center Energy Management Drive seems an unparalleled breakthrough in data center energy management. For one, it is designed to provide a new visibility into the utilization analytics of most devices. The JouleX Energy Manager is touted to have the capacity to help the operators increase a data center efficiency by providing the energy utilization analytics for every device on the network.
Looked at from another perspective, the JouleX Energy Manager helps an operator to understand how the power is allocated by enabling the monitoring in a virtualized environment. It also leverages the network to measure the real-time energy consumption of any network-connected device.
In essence, JouleX's future products have great prospects in the marketplace as long as the company takes on the Cisco's brand. And whether you believe in the concept of monopoly or not, Cisco aims to achieve it.
However, there is no firm assurance that the journey toward creating a monopoly would prove to be an easy task for Cisco. The company would need to provide the market with a compelling reason to make it switch to Cisco's data center products. However, the reasons behind the Cisco acquisition are clear. JouleX has a recognizable name and the salable products.
Interestingly, Juniper recently updated its switches to include a new capability for simplifying a data center operation. The update will enable an IT team to manage both the compute and the network infrastructure. Additionally, Juniper's product will streamline the network configuration changes.
Nonetheless, you may be interested in knowing that Hewlett-Packard recently unveiled an assortment of its new data center automation products. A report has it that the products have the capacity to deliver their services at a scale on the premises or in the cloud.
In another development, Alcatel-Lucent has made a public statement that it has introduced a software suite that is incubated by an internal group acting as a separate entity. The data center product embraces an open standard at a greater depth than the competitive offerings of Cisco and Ericsson.
There is no argument that Cisco will maintain its period of profitability with the acquisition of JouleX. The company stands to remain one of the players that will take the data center to the next level. The investors should wait and monitor the companies patronizing JouleX's products. They will be many. Very many organizations have the need for the data center product.