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Systems Channel News Roundup, Jan. 26-30

This week's headlines: VMware surprises on Wall Street as Citrix announces layoffs, and the data center networking battle heats up.

Systems Channel News Roundup for Jan. 26-30, 2009.

Citrix plans layoffs as VMware grows

Two of the virtualization market's biggest players announced their financial results this week. And while VMware fared surprisingly well -- beating Wall Street estimates with $515 million in revenue -- the news was quite the opposite for Citrix Systems. The company's quarterly revenue did increase by 4% from the previous year, but its product license sales decreased by 9%, and profits were down as well. Citrix said it would layoff 10% of its employees and take other steps to cut its annual expenses by $50 million.

Data center networking market heats up

It was a busy week in the increasingly competitive data center networking market, as major vendors released new products and announced new partnerships.

Brocade rolled out the DCX-4S Backbone, a smaller version of its DCX Backbone, according to This new, 192-port version supports Converged Enhanced Ethernet (CEE) and Fibre Channel over Ethernet (FCoe), and it is available from Brocade as well as OEM partner Sun Microsystems and Hewlett-Packard.

Meanwhile, Cisco Systems went big by releasing its Cisco Nexus 7018 switch, which sports an 18-slot chassis and will be a key part of its FCoE push. The company also expanded its partnership with Dell, which will allow Dell to sell the Cisco Nexus 5020 switch with Dell servers and storage.

And, not to be outdone, Hewlett-Packard ProCurve launched a new series of data center switches, putting the company in direct competition with Cisco. reported that the move could force the two vendors' channel partners to choose sides.

Trend Micro gets Citrix-certified

Trend Micro said this week that Citrix has certified its OfficeScan Client/Server Edition 8.0. OfficeScan uses a hybrid cloud-client infrastructure to protect businesses in real time, and the certification means that OfficeScan is an approved method of protecting Citrix XenApp and other Citrix application virtualization environments.

Check out last week's Systems Channel News Roundup.

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