Posts Tagged ‘Cisco’

Cisco impresses with UCS

December 20th, 2011

If you’re tempted to think of Cisco’s Unified Computing System (UCS) as just another blade server — don’t. In fact, if you just want a bunch of blades for your computer room, don’t call Cisco — Dell, HP, and IBM all offer simpler and more cost-effective options.

But, if you want an integrated compute farm consisting of blade servers and chassis, Ethernet and Fibre Channel interconnects, and a sophisticated management system, then UCS might be for you.

Cisco sees UCS as key cloud building block

When Cisco introduced UCS in 2009, based on a 2006 investment in Nuova Systems, everyone had an opinion about Cisco entering the server business. Now that they’ve had a couple of years to prove their case, we wanted to take a closer look and see whether UCS had lived up to the initial excitement.

We found that for some environments, Cisco has brought a compelling and valuable technology to market. Cisco UCS offers enterprises greater agility and lower deployment and maintenance costs, and is especially attractive in virtualization environments.

While UCS won’t be attractive in some data centers, and won’t be cost effective in others, it does have the potential to make life, and computing, easier for data center managers.

Under the hood

Cisco UCS has three main components: blade server chassis and blades, a fabric interconnect, which is networking based on Cisco Nexus 5000 switch hardware and software, and a management system resident within the fabric interconnect that controls it all.

The blade server chassis is fairly simple, and there’s a competitive selection of blade CPU and memory options. Networking is integrated, not just within the chassis, but between multiple chassis (up to about 20 within a single management domain today).

But what really makes Cisco UCS worth considering is the integrated hardware and configuration management. In UCS, a single Java application (or CLI) is used to manage the hardware and network configuration for up to 176 blades today, with a doubling of that expected to hit the streets soon.

The management system runs as a software process inside of the (mandatory) UCS 6100- or 6200-series fabric interconnect hardware, and is responsible for configuration of the chassis, the blades, and all networking components.

If you follow Cisco’s advice and use two fabric interconnects, you’ll have high availability for networking, and high availability for UCS management. The management system automatically clusters and runs in an active/passive high-availability mode spread across the two fabric interconnects.

Cisco claims 7,400 UCS customers as of August

The management interface actually takes the form of a documented XML-based API, accessible either via Cisco-provided CLI or GUI tools, or, if you want to write your own tools or buy third-party ones, directly via the API. We used the Java-based UCS Manager software, which is what anyone with a single UCS domain would want to use, in most of our testing.

Because a UCS domain is limited in size today to about 175-ish servers connected to a single pair of UCS fabric interconnects, it’s likely that many customers will have at least two domains for two data centers. In that case, you can manage the two domains separately or buy a third-party “orchestrator” package that lets you work across domains. Cisco actually offers a free open source tool called “UCS Dashboard” that lets you roll up two or more UCS domains into a single read-only view.

There are some limitations to the reach of the management system. For example, if you provision a new server with SAN connections, there’s no way for the management interface to reach over to the SAN to make the linkage and match up Fibre Channel names. The same is true for networking: just because you create a new VLAN using the UCS management system doesn’t mean that the rest of your network will know about it.

UCS management at your service

UCS management is based largely on the concept of “service profiles,” a series of parameters that define every aspect of a single blade server, from BIOS versions, power and disk settings, to network interface card configurations including media access control addresses and storage-area network identifiers.

Once you have created a service profile for a type of server, you use it whenever you want to add servers to your mix. Install the blades, and then apply the service profiles in an “association cycle.” Within a few minutes, a server can be provisioned that matches your requirements.

We can say one thing: you don’t know what you’re missing until you’ve seen UCS management in action. Getting a server from out-of-the-box to ready-to-use is reduced to a bare minimum of effort. This makes UCS ideal for enterprise environments where the number of servers is sizeable and growing continuously.

If you’re not constantly adding new servers, and incurring the pain of configuration and deployment, then an investment in UCS is less compelling.

Digging deeper into UCS servers

Cisco UCS may be all about management, but if the servers that make up UCS don’t make the grade, then there’s no point. We found a solid core of full-featured blades, but also a lot of obsolete and niche UCS products on the web site and price list that had to be cut away to understand what was really important. In both servers, and in networking options, Cisco has a lot of parts that confuse the issue, making things more complicated than they need to be.

Cisco currently offers B-series (blade) and C-series (rack-mount server) options for UCS, although the B-series are all that matters. The B-series are blades that go into an eight-slot chassis (the UCS 5108), and the C-series are standard 1U to 4U rack-mount servers.

The B-series blades have changed over time. Cisco started with an “M1″ series of blades, some of which are still on its price list, and has since gone through an upgrade cycle, offering B200, B230, B250, and B440 M2 blades. Today, the “M2″ series includes two-socket and four-socket offerings based on Intel 5600 and E7 series processors with four to 10 cores per socket, CPU speeds up to 3.46 GHz, and with up to 512GB memory.

Blades come in both single slot and double slot configurations, depending on the number of disk drives and the amount of memory you want. (Cisco confusingly calls these half-slot and full-slot, which means they should have called the 5108 chassis a 5104 chassis, since it really only has four “full slots.”) Most environments will be based on the single slot configuration, giving eight blades per chassis.

Compared to existing 1U servers from traditional vendors, the B-series blades stand up as very competitive offerings from a technology point of view. In fact, with Cisco’s Extended Memory Technology, B200 two-socket servers can have as much as 384GB of memory, beating out traditional rack-mounted Intel Xeon 5500/5600-based servers that top-out at 144G or 288GB (using very expensive and not-very-available 16GB DIMMs). Even if you don’t want that much memory, Cisco’s higher DIMM slot count lets you use less expensive (per gigabyte) DIMMs to achieve the same memory capacity.

Cisco UCS pricing: It’s complicated

As with any blade server, the focus is on network-based storage via SAN rather than local storage. The B-series blades all have the capability to handle two or, in the case of the B440, four drives, but local storage is extremely limited. If more than four drives of local storage on a single system are important, then blade servers are probably not right for you.

The C-series includes six standalone devices, from 1U to 4U and with a storage capacity of between eight and 16 drives. Anyone looking at UCS should focus exclusively on the B-series, for two reasons. First, while the C-series have most of the capabilities of the B-series blades, they aren’t managed and controlled in the same way, although Cisco told us they are working to smooth out the differences.

Secondly, and more importantly, there’s just not a lot of point in buying standalone servers from Cisco. All of the advantages of UCS disappear when you’re talking big servers with lots of local disks. Once you put a lot of disks on something, it’s no good for hypervisor virtualization, and it’s no longer a cog in the machine of the data center.

Cisco competitors downplay new blade server

If you had a big Cisco blade server farm and wanted to throw one or two rack-mount standalone servers in, you could do that for a special purpose, but there’s no good reason to build UCS in your machine room based on rack-mount servers.

Cisco’s blade chassis, the UCS 5108, is also very competitive with other blade chassis on the market. The 6U unit has four power supplies and eight fan trays and is designed for easy maintenance both of the chassis and the blades inside of it. Features such as front-to-back airflow and cabling are all set up for modern data center environments. If you put the UCS 5108 in your data center, you’re not going to be surprised by any poor design choices.

On the other hand, the raw blade servers you get in UCS are not going to stun you with their brilliance either. Now that most servers are being treated as commodity systems using the same chipset, there’s not a lot of room for computing innovation while maintaining compatibility.

If you’ve been buying servers by the dozen from Dell, IBM, and HP, Cisco’s blade server specifications and capabilities aren’t going to be very far afield from what you’re used to.

Networking innovation

UCS is primarily a server product designed to be sold to data center managers, not network managers, but, as you would expect from Cisco, there’s a very strong awareness of the problems of networking in the data center.

For example, a fully configured UCS chassis with eight servers inside will usually only require four power cables, and four data cables to connect to the enterprise network: two 10Gbps ports out of the interconnect card on one side of the chassis and two out of the card on the other side.

That’s not bad for eight servers, which would traditionally require eight times as many patch cords for both storage and networking, and four (or more) times as many power cables.

To understand the networking, you have to see that Cisco has created a distributed switch, extending all the way from the traditional distribution-layer switch down to the NIC in the blade server, and even to virtual NICs in virtual machines running on a blade server.

Cisco UCS includes two critical pieces that make this large-scale distributed switch possible. The first piece is the Fabric Extender, the UCS 2104XP. This card — and you need two of them per blade chassis, unless you are simply building a test system — sits in the UCS 5108 chassis, and aggregates the traffic inside the blade server, including both Ethernet and Fibre Channel, from all eight blades over internal 10Gbps interconnects. These fabric extenders shoot the traffic up to the second critical piece, the Fabric Interconnects, (based on Cisco Nexus 5000 switch hardware) over multiple 10Gbps connections.

The benefit of UCS to the network manager is that everything, from the fabric interconnects down to the Ethernet cards in the blades, is managed as a single entity. There’s no difference between the management of the core switches, the top-of-rack switch configuration, which wires go to what ports, or how VMware networking is configured — it’s all done by one person, the UCS chassis manager, using Cisco’s UCS management tools.

The networking handoffs between a Cisco UCS domain of a hundred or more servers and the rest of the data center occurs at the fabric interconnect, where a few Ethernet and Fibre Channel connections link UCS to the core LAN and Fibre Channel switches. It’s sophisticated networking, but the details are hidden. Remember that UCS is managed by server managers with a minimum of requirement for networking expertise. To set your expectations properly, pretend that it doesn’t say “Cisco” on that nameplate — this is not a network product, but a server product.

Once the configuration is loaded into a blade, the blade’s networking configuration is done and isolated from other devices. That means that when you start to load an operating system on a configured blade, all you see are the Ethernet and Fibre Channel ports configured by the UCS manager.

In a VMware environment, the UCS manager brings virtual ports to each virtual machine. The VMware Vswitch is gone (if you want), because the Vswitch has been replaced by the UCS fabric extenders and fabric interconnect, a true physical switch. There’s no need for the VMware manager to understand VLANs, Vswitches, or anything other than normal LAN and storage interconnections.

These configured ports on blades show up as virtual ports on the fabric interconnect. Every virtual NIC on every VLAN (and every Fibre Channel adapter) available to every blade has become a port on the fabric interconnect, literally thousands of them in some situations.

While the fabric interconnects are based on the same hardware as Cisco’s Nexus 5000-series switches, you don’t get the full IOS configuration capability you might have expected on the Nexus switch. The fabric interconnect switches traffic, but that’s about it, meaning that more powerful Layer 3 switch features, such as routing and access control lists, are not available at this level.

If you’ve gotten used to advanced security features of Cisco’s Nexus 1000V virtual switch in your VMware environment, you won’t find them in Cisco UCS, and you’d have to combine UCS capabilities and the 1000V, losing some of the benefits of UCS.

Cisco goes even further and strongly suggests you run the fabric interconnect in “End Host” mode which disables spanning tree, making the UCS domain connect up to your network as if it were a really, really, big host. UCS then can spread the load of different VLANs across all uplinks from the fabric interconnect to the rest of the network. This advice makes it clear who UCS is designed for: not the network manager, but the server hardware manager.

Strict configuration makes for simplified networking

Networking flow in Cisco UCS is very hierarchical and very constrained. Every blade connects Ethernet data, Fibre Channel data, and some out-of-band management traffic, over two private 10Gbps connections. These two connections are internal within the chassis, one from each blade to the two fabric extenders also within the chassis (in the normal case). The fabric extenders connect upwards, out of the chassis, to the fabric interconnects, typically using two ports per fabric extender for a total of four ports per chassis going to two fabric interconnects.

From the fabric interconnects, Cisco UCS connects to the rest of your Ethernet and Fibre Channel network via separate Fibre Channel and 10Gbps Ethernet connections.

Some variation in networking is possible, but not a lot. Cisco has multiple Ethernet cards available for the blades, but most network managers will use the M81KR adapter, code-named “Palo,” which presents itself as Fibre Channel and Ethernet NICs to the blade, and has two 10Gbps internal uplink ports.

There’s also an Ethernet-only card if you don’t want Fibre Channel, which will save you $300 a blade. However, if you’re not heavily into Fibre Channel storage, all of the networking integration and many of the provisioning advantages of UCS won’t mean anything to you — which suggests that UCS works best in a Fibre Channel environment.

In other words, if you’re using iSCSI or local storage, you’re not a great candidate for seeing the advantages of UCS.

When we looked at UCS last month, the fabric extender was limited to the 2104XP, which has eight internal ports (one for each blade) and four uplink ports to the fiber interconnect, all at 10Gbps. A 2208 model has been announced (along with a matching high-density Ethernet card), with 32 internal ports and eight uplink ports, for the rare environment where 10Gbps is just not enough for a single blade.

The fabric interconnects have also been revised. Cisco originally released the UCS 6120XP and UCS 6140XP, able to handle 20 and 40 chassis ports plus uplink capacity. The current replacement for both is the UCS 6248UP, with a total of 48 ports. Depending on how the rest of your network looks, that would leave you room for 20 to 22 chassis per switch. The unannounced-but-nearly-ready UCS 6296UP would double those numbers, allowing up to 44 chassis, or 352 blades, per UCS domain.

Those maxima are pretty important, because you can’t grow UCS domains (that’s the word Cisco uses for a combination of fabric interconnects and chassis) beyond two peer-connected fabric interconnects.

If you follow best practice recommendations for redundancy, that means you start with two fabric interconnects (which are clustered into a single management unit), and can have up to about 22 chassis, or 176 blade servers, per UCS domain using released hardware. (Double that if you’re willing to wait for the UCS 6296UP to ship.)

All of these configuration guidelines and capabilities make UCS networking a great fit in some environments, but not in others.

If you’ve had networking configuration and management problems with large virtualization environments or even physical environments with lots of servers, Cisco UCS provides a dramatic simplification by creating a flat distributed switch that reaches all the way down to each guest virtual machine.

If you’ve been burned by cable management problems, or if the idea of bundling more than 150 servers or 1,500 virtual systems into four racks with 80 internal patch cables and less 10 external patches seems like a good one, then the network density and rollup of UCS will definitely drop your blood pressure. And reduce the likelihood of patching and configuration error.

Is UCS right for you?

After spending a week looking in-depth at Cisco UCS, as we did, it’s easy to come away excited about the product. The engineering is solid, the software isn’t buggy, and UCS clearly has something to offer to the data center manager.

On the other hand, UCS is not for everyone. If you’ve only got a 100 servers in your data center, or if you’re not growing racks full of servers every few months, you won’t enjoy the management interface, because you’re not feeling the pain of deploying servers.

If you’re worried about single vendor lock-in for hardware and networking, if you run the same application on 10,000 servers, or if capital costs for servers are a major concern, Cisco UCS won’t be very attractive to you.

Cisco UCS is thoroughly modern hardware. The performance (running industry standard benchmarks) in both virtualization and non-virtualization environments is outstanding. Features such as power management, hardware accessibility, and high-speed networking are what you’d want from a server vendor. Although there will always be a lingering concern whether Cisco will stay in the server business, they’ve shown evidence of continuing innovation and development, and solid commitment from customers up to this point.

The use case for UCS boils down to two advantages: agility, and shrinking provisioning and maintenance time.

Agility because UCS treats server blades the way that SANs treat disk drives, as anonymous elements that are brought into play as needed by the load. Whether you’re layering a virtualization workload on top of non-virtualized servers, UCS offers some of the benefits of virtualization at the server hardware layer.

One Cisco staffer called it “VMotion for bare metal.” It’s not exactly that, of course, but the idea is the same: virtual or non-virtual workloads can be moved around computing elements. This makes it easy to upgrade servers, to manage power, to balance loads around data centers, and to maintain hardware in a high-availability world.

The shrinking of provisioning and maintenance time comes from the management interface. All of the little details of bringing a new rack of servers online, from handling Fiber Channel addressing to virtual or physical NICs, to cabling, to power management, to making sure that every little setting is correct — they’re all taken care of by the UCS management layer, either using Cisco’s applications, a multi-domain orchestrator from some third party, or even home-grown tools.

If virtualization is one of the first steps you take to gain a competitive advantage in enterprise computing, then the agility and flexibility that UCS delivers are good second steps.

Source:http://www.techworld.com.au/article/410664/cisco_impresses_ucs/

Cisco Systems Inc (CSCO): Today’s Featured Computer Hardware Loser

December 13th, 2011

Cisco Systems (CSCO) pushed the Computer Hardware industry lower today making it today’s featured Computer Hardware loser. The industry as a whole closed the day down 0.9%. By the end of trading, Cisco Systems fell 34 cents (-1.8%) to $18.54 on average volume. Throughout the day, 43.2 million shares of Cisco Systems exchanged hands as compared to its average daily volume of 56.5 million shares. The stock ranged in price between $18.26-$18.70 after having opened the day at $18.62 as compared to the previous trading day’s close of $18.88. Other company’s within the Computer Hardware industry that declined today were: Hauppauge Digital (HAUP), down 7.5%, Mitek Systems (MITK), down 5.8%, iGo (IGOI), down 5.7%, and AU Optronics Corporation (AUO), down 4.7%.

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Cisco Systems has a market cap of $99.83 billion and is part of the technology sector. The company has a P/E ratio of 16, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 6.7% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Cisco Systems a buy, no analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Cisco Systems as a buy. The company’s strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Source:http://www.thestreet.com/story/11342522/1/cisco-systems-inc-csco-todays-featured-computer-hardware-loser.html

Cisco’s Bigger Bundle of Networking

December 7th, 2011

Cisco introduced a comprehensive collection of computer networking hardware for cloud computing on Tuesday. The parts are not particularly new, but the packaging is — and that matters for both customer education and sales.

The framework, CloudVerse, unifies computing and network management; computer applications, including video and collaboration software; and movement of data between clouds. The benefits should include lower cost, faster deployment, and easier management, the company says.

“It’s a pool of computing resources,” said Lew Tucker, Cisco’s chief technical officer for cloud computing. “We’re still an infrastructure provider, but we’re coming out with more complete solutions.”

The underlying technologies include Cisco’s Unified Data Center, Cloud Applications and Cloud Intelligent Network products. Not long ago, these were considered both advanced and comprehensive. Now, they too need to work together as one product, for a world where tens of thousands of computers may work at once on a single task.

“By unifying the pool of resources, you can automate even more of the network,” Mr. Tucker said.

Cisco is coming out with a lot of corporate customers to endorse CloudVerse, including Fujitsu, Telstra and Silicon Valley Bank.

CloudVerse also reflects efforts by John Chambers, Cisco’s chief executive, to simplify and streamline what and how it sells to big corporations. What Cisco may increasingly leave behind with this move is VCE, the supposedly “best of breed” cloud hardware Cisco formed in conjunction with the data storage company EMC Corporation, with investments from the computer virtualization firm VMWare and Intel. EMC was founded in 2009, has been around about a year in its current form and has relatively little presence or come up in discussions with senior executives at any of the sponsoring companies. Mr. Tucker did not comment on what effect the new Cisco strategy would have on VCE.

Meanwhile, like other tech giants, Cisco has issued some nearly frightening, certainly mind-boggling statistics about how much data we will soon consume, thus requiring more clouds. Global cloud traffic, Cisco says, will grow more than 12 times by 2015, to 1.6 zettabytes. That is about four days of high-quality video for every person on the planet. If you are reading this, you will probably take more than your share.

Source:http://bits.blogs.nytimes.com/2011/12/06/ciscos-bigger-bundle-of-networking/

Cisco Systems Inc (CSCO): Today’s Featured Computer Hardware Winner

November 14th, 2011

Cisco Systems Inc (CSCO) pushed the Computer Hardware industry higher today making it today’s featured computer hardware winner. The industry as a whole closed the day up 3.7%. By the end of trading, Cisco Systems Inc rose 41 cents (2.2%) to $19.02 on average volume. Throughout the day, 79.9 million shares of Cisco Systems Inc exchanged hands as compared to its average daily volume of 60 million shares. The stock ranged in a price between $18.76-$19.15 after having opened the day at $18.79 as compared to the previous trading day’s close of $18.61. Other companies within the Computer Hardware industry that increased today were: Pinnacle Data Systems Inc (PNS), up 105.2%, Mitek Systems Inc (MITK), up 16.9%, Immersion Corporation (IMMR), up 13.2%, and Hauppauge Digital (HAUP), up 9.3%.

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Cisco Systems Inc has a market cap of $94.79 billion and is part of the technology sector. The company has a P/E ratio of 15.1, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 8% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Cisco Systems as a buy. The company’s strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income

Source:http://www.thestreet.com/story/11308820/1/cisco-systems-inc-csco-todays-featured-computer-hardware-winner.html

Cisco Systems Inc (CSCO): Today’s Featured Computer Hardware Winner

October 14th, 2011

The computer hardware industry closed the day up 0.9%. Hauppauge Digital (HAUP), Lantronix Inc (LTRX), Rimage Corporation (RIMG), and Pinnacle Data Systems Inc (PNS) were all winners today within the computer hardware industry with Cisco Systems Inc (CSCO) being today’s featured computer hardware winner. Cisco Systems Inc rose 26 cents (1.5%) to $17.25 on average volume. Throughout the day, 65.5 million shares of Cisco Systems Inc exchanged hands as compared to its average daily volume of 73.8 million shares.

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Cisco Systems Inc has a market cap of $92 billion and is part of the technology sector. The company has a P/E ratio of 14.6, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 15.5% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Cisco Systems as a hold. The company’s strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Source:http://www.thestreet.com/story/11276001/1/cisco-systems-inc-csco-todays-featured-computer-hardware-winner.html

Two Convicted In Counterfeit Cisco Gear Racket

May 31st, 2011

federal jury last week convicted two people for running a racket that sold counterfeit Cisco gear.
Both Chun-Yu Zhao, of Centreville, Va., and Donald H. Cone, of Frederick, Md., had been charged with operating, together with family members in China, “a large-scale counterfeit computer networking equipment business under the name of Han Tong Technology (Hong Kong) Limited,” as well as a Virginia-based company called JDC Networking Inc. that relabeled and sold the equipment.

“Zhao operated the U.S. headquarters of a Chinese company that was in the business of stealing intellectual property and defrauding customers,” U.S. Attorney Neil H. MacBride said in a statement.
The website for JDC is still active, and advertises new and used products from Cisco, Juniper Networks, and Extreme Networks. According to the website, the company was established in 2001 and sells Cisco “switches, routers, hubs, servers, cables, and accessories.”

But according to prosecutors, “JDC Networking Inc. altered Cisco products by using pirated software, and created labels and packaging in order to mislead consumers into believing the products it sold were genuine Cisco products.

“To evade detection, Zhao used various names and addresses in importation documents, and hid millions of dollars of counterfeit proceeds through a web of bank accounts and real estate held in the names of her family members in China, prosecutors said.

The jury convicted Zhao and Cone on conspiracy charges, which carry a maximum sentence of five years and a $250,000 fine. But Zhao was also convicted of “importation fraud, trafficking in counterfeit goods and labels, false statements to law enforcement, false statements in naturalization, and money laundering,” prosecutors said. Those charges carry a maximum sentence of 10 to 20 years each, as well as fines ranging from $250,000 to $2 million per charge.

The jury also returned a verdict requiring Zhao to forfeit numerous assets, “including two Porsches, one Mercedes, seven bank accounts containing more than $1.6 million, and four homes and three condominiums with a total value of more than $2.6 million,” said prosecutors.

Zhao’s criminal enterprise began to unravel after the U.S. Customs and Border Protection agency intercepted counterfeit products that had been sent from China to an “addresses associated with Zhao and JDC Networking,” said prosecutors. From there, the case was investigated by Immigration and Customs Enforcement in the Department of Homeland Security (DHS), as well as the inspectors general from the General Services Administration and the Department of the Interior.

The case is part of a larger Department of Justice effort, known as the Task Force on Intellectual Property. Established in February 2010 by Attorney General Eric Holder, the task force’s mission is to “combat intellectual property crimes” at home and abroad, through both law enforcement investigations and enforcement, as well as attempting to influence related laws in other countries. The task force includes representatives from numerous parts of the Department of Justice, including the FBI.

Cisco has also been pursuing companies that sell fake versions of its products, for example as part ofOperation Network Raider, an ongoing domestic and international effort, run by the Department of Justice and DHS, that targets counterfeit networking hardware made in China.

According to Dave Walters, director of global business operations at Cisco’s worldwide brand protection division, by last year, the operation has resulted in “30 felony convictions and more than 700 seizures of counterfeit Cisco products worth an estimated retail value of more than $143 million.”

Source:http://www.informationweek.com/news/infrastructure/management/229700150

Cisco to make some trims

April 8th, 2011

After sending a companywide memo that he described as a “call to action,” Cisco (CSCO) CEO John Chambers told analysts Thursday that the San Jose networking giant will trim some business initiatives and focus on a short list of key priorities.

Without offering specifics on where he plans to cut, Chambers hinted at streamlining the company’s management structure and left the door open to pulling back on consumer products, as Cisco attempts to turn a corner on recent financial reports that disappointed investors.

But he vowed that Cisco will “double down” on video technology, while working to improve profit margins in the company’s network switching division, a core segment of Cisco’s business.

“There are areas we just have to fundamentally change,” Chambers said during a Wells Fargo investment conference in San Francisco. “I give us high marks for innovation. Where we have to do better, I’d say, is operational excellence.”

The veteran CEO spoke three days after he sent a lengthy memo to Cisco’s 70,000 employees in which he staunchly defended the company’s overall strategy but acknowledged Cisco had lost “credibility” with customers and shareholders.

Cisco is one of the world’s biggest tech companies,

with $40 billion in sales last year. After initially showing signs of strong recovery from the recent recession, Chambers surprised Wall Street analysts with a bearish forecast in November and then reported an 11 percent profit drop in February.

Along with declining profit margins, Cisco disclosed in February that quarterly sales of switching equipment fell nearly 8 percent and sales of consumer products — a relatively new business for the company — were down 15 percent. The company’s stock has been trading at two-year lows.

Wall Street welcomed Chambers’ promise of change this week, which UBS investment analyst Nikos Theodosopoulos called, in a report to clients, a “good first step.”

Chambers, who has been CEO of Cisco Systems since 1995, said Thursday that the company will focus on five areas, including network routing and switching, business collaboration tools, cloud computing, computer system architecture and video communication.

While that indicates Cisco will emphasize networking, communications and hardware and software for big data centers, Chambers made a point of saying the company won’t abandon its efforts in computer security and “smart grid” technology. He described those as important opportunities for future growth.

Cisco will begin selling a new tablet computer for business use this month, Chambers added. But he did not mention the company’s recent forays into consumer products such as home routers and video cameras. Critics contend those segments are too low in profit and too far from Cisco’s core strengths to be worthwhile.

“We’ll make tough decisions” to lower expenses or otherwise cut some business segments, Chambers said, adding that Cisco will handle those decisions “with class” in terms of their effect on employees and customers. In a report this week, Barclays Capital analyst Jeff Kvaal said he doesn’t expect major layoffs, but predicted Cisco will “redeploy some of its people from areas that are de-emphasized.”

Chambers acknowledged Cisco faces new competition in the switching business, which contributes nearly a third of company revenue. While Cisco is addressing those external challenges, he said, it’s also examining internal product cycles and the company’s ability to improve profit margins on new models.

Cisco’s stock rose nearly 5 percent Wednesday, after Chambers’ memo to employees became public, but it fell almost 1 percent Thursday, closing at $17.91.

Source:http://www.istockanalyst.com/business/news/5046346/cisco-to-make-some-trims

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