VORTEX Digest 
John Gallant Spotlights Top Network News and Issues 
Comments to: mailto:[EMAIL PROTECTED] 
Dec. 22, 2004 
Volume 6, Number 19
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In This Issue:
* EMC solidifies its plan to dominate the new data center
* Cisco buys newbie security firm Protego
* 2005 looks good
* Invite a friend to join the discussion 
* Subscription information 
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"Blessed is the season which engages the whole world in a 
conspiracy of love."

Hamilton Wright Mabie

Dear Vorticians,

Shortly after sending out last week's missive on the new wave of 
mergers and acquisitions restructuring enterprise IT, two more 
deals emerged that illustrate how the major companies are 
hustling to position themselves for the new data center 
environment. 

I spent some quality time on Friday speaking with Howard Elias, 
executive vice president of corporate marketing and EMC's Office 
of Technology, about this new data center world and he shared his 
thoughts on the merger of Veritas and Symantec. Near the end of 
that conversation, Howard indicated that EMC - which has been 
busy on the M&A front - wasn't done with its own deals.

Voila! This week, EMC, which celebrated its 25th anniversary in 
2004, grabbed up network and systems management vendor SMARTS. 
The deal helps advance the Information Lifecycle Management 
strategy outlined briefly in this newsletter some time ago and, 
in depth, by Howard at the VORTEX 2004 conference. For customers, 
ILM is all about a more flexible way to architect and manage 
their compute/storage infrastructure. For EMC, the strategy is 
all about moving beyond simply providing 'storage,' which is 
increasingly commoditized, and EMC has been backing up that 
strategy via some well-chosen acquisitions.

Last year, the company acquired Documentum and Legato, moves that 
provided new tools to help customers manage their data. But then 
EMC surprised the market with its purchase of virtualization 
software vendor VMWare - a deal that positioned EMC to take 
greater control over customers' computing resources. From the 
disk drive to the server, just like that.

VMWare's a young company, but it has already built a robust 
customer base. Network World columnist Mark Gibbs recently 
attended a VMWare customer conference and was wowed by both the 
number of big ticket customers and how they're changing their 
data centers through use of the company's products. (You can read 
Gibbs' assessment by clicking on 
http://www.nwfusion.com/columnists/2004/110804backspin.html.)

SMARTS takes this all a step further, giving EMC customers a way 
to manage better their virtualized computing and networked 
storage environments. Like VMWare, SMARTS offers innovative 
technology that has won some powerful adherents in the customer 
world. 

It's quite clear that EMC intends to own the virtualized data 
center environment of tomorrow and it is willing to buy what it 
needs to make that happen.

Ditto for Cisco. 

Last week I mentioned how Cisco had outlined its plans for the 
new data center at a recent analysts conference. (You can read 
about the company's plans at 
http://www.nwfusion.com/news/2004/121304ciscoenterprise.html.) 
This week, Cisco took another step forward by buying up newbie 
security firm Protego. While this is a smaller acquisition than 
the SMARTS deal, it paints a picture of the road ahead for Cisco. 
Key to owning the virtualized data center is offering customers 
stronger security - security that is inherent to the network, not 
tacked on at the periphery, like a firewall.  If Cisco is going 
to own this new data center - fending off the likes of EMC, HP, 
IBM and others - it needs to bolster its security capabilities.

You can be sure that the new year will bring news of additional 
deals by Cisco, EMC and all the other enterprise IT companies 
that want to dominate the new data center and applications world 
that is beginning to emerge.

On another note, I want to tell the world (apropos of my opening 
quote) that I'm in love. 

First, I'm in love with this time of the year. Yes, I'm a sucker 
for the bright lights and the holiday music, but it's more about 
the mood. People seem to be generally nicer and they, perhaps 
unwittingly, reflect for a moment on how important are the other 
people in their lives. That's a good thing, whether you celebrate 
Christmas, Hanukah, something else or nothing at all. We all get 
so caught up in our work and the politics and other fleeting 
concerns of the world that we forget what's central and vital. 

Charles Dickens captured that in this dialogue from A Christmas 
Carol, arguably my favorite book. Here, Ebenezer Scrooge is 
confronted by the specter of his former business partner, Jacob 
Marley, who materializes from another plane of existence to offer 
Scrooge the opportunity to mend his money-grubbing ways.

"'But you were always a good man of business, Jacob,' faltered 
Scrooge, who now began to apply this to himself. 

"'Business!' cried the Ghost, wringing its hands again.  'Mankind 
was my business.  The common welfare was my business; charity, 
mercy, forbearance, and benevolence were, all, my business.  The 
dealings of my trade were but a drop of water in the 
comprehensive ocean of my business!'"

Would that we could all remember that in 2005 and beyond.

Second, I'm in love with readers of VORTEX Digest. Thanks for 
sharing your ideas and thoughts. Thanks for telling me when I'm 
on the mark and when I've lost my way. It's an honor to serve 
you.

Best wishes for a happy holiday season and for a healthy, 
prosperous 2005. I'll be back in touch in the New Year.

Bye for now.

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VORTEX Digest is written weekly by Executive Producer John 
Gallant and offers an ongoing dialogue on matters raised at The 
VORTEX Conference, and within the VORTEX Community. 
 
VORTEX is an exclusive, invitation-only event for senior 
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VORTEX shakes off the hype and helps you understand where you can 
win new customers, and find new revenue in a time of dramatic and 
seemingly unpredictable change.      
  
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Copyright: Network World, Inc. 2004

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