4/22/2008 -- It's been a very busy month for Cisco Systems Inc., which has recently launched a new application extension program for its ISR Routers, introduced new fixed configuration ISR routers and, crucially, unveiled its Nexus 5000 Series, a new lineup of datacenter class switches.

Nexus 5000 is based on technology Cisco picked up earlier this month when it acquired Nuova Systems. Interestingly enough, Cisco's Nuova buy looks like a case of acquisition-by-venture-capital-investment: It first purchased an 80 percent share of Nuova -- which was founded by a quartet of "retired" Cisco executives -- almost two years ago. Earlier this month, Cisco closed the loop, picking up the remaining 20 percent in tandem with its announcement of the new Nexus 5000.

Along with its Nexus 5000 release, Cisco announced version 2.0 of its Data Center Networking Infrastructure (DCNI) specialization, which -- industry watchers say -- meshes nicely with its Data Center 3.0 strategy.

"[Cisco] has put a considerable amount of time and resources into its Data Center 3.0 strategy, including the acquisition of Nexus 5000 creator Nuova," wrote Steven Schuchart, a principal analyst for enterprise network systems with consultancy Current Analysis. "The Nexus line represents the first products in the emerging datacenter fabric market that will become increasingly more important as seamless high-speed internal datacenter interconnects become an enabling component in enterprise virtualization strategies."

Schuchart sees the acquisition as a very big deal for the Ethernet switching segment, as well as the still-gestating data center fabric market.

"Cisco is literally charging out of the gate with multiple Nexus products and initiatives to strengthen its datacenter practice with Cisco Data Center Networking Infrastructure 2.0 specialization for reseller partners," he said.

What's not to like? After all, the Nexus product line plugs a hole in Cisco's datacenter product stack: the so-called "top rack," where customers can uplink to either Cisco's Nexus 7000 or to the Catalyst 6500.

"The Nexus 5000 uses a thin Twinax cable with attached SPF+ connectors that will make it much easier to cable a rack as well as drastically lowering the per-port cost of 10GB Ethernet connectivity," Schuchart said. "The costs of optics in standard 10GB Ethernet optical connectivity make up a great deal of the per-port cost and the Twinax connectivity offered on the Nexus solves that problem and makes 10GB Ethernet much more attractive."

Elsewhere, he noted, the Nexus 5000 supports both Fibre Channel over Ethernet (FCoE) and iSCSI, which allows "customers to consolidate networks onto Ethernet, rather than deploying separate networks for storage."

Then there's Cisco's revised DCNI specialization, which should also give it a competitive boost, Schuchart said.

"By evolving its channel specialization program, Cisco is ensuring that its most qualified datacenter resellers are onboard with the Data Center 3.0 strategy and have a full understanding of the two Nexus product lines," he said. "Cisco is creating opportunities for itself by aligning strategies, products and resellers towards the same goal." --Stephen Swoyer