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But Cisco believes its solution, which includes new hardware, like blade servers, can be packaged together with hardware and software from partners to provide companies of all sizes a one-stop shop for all their virtualization needs.

“Cisco has done this already,” said Kerravala. “They have done this in VoIP and telepresence, and they’ve proven that they can push the market in their direction. But a lot of their success in terms of delivering true network-based services will happen in concert with other things, like the digitization of content and the build-out of new wireless networks.”

Of course the problem with doing this today is that the network is not fast enough. There isn’t enough capacity on AT&T’s 3G wireless network to handle this amount of activity. But as carriers roll out 4G wireless broadband networks, this idea of virtualization could become a reality. It’s already starting to become a reality on the wired network. Many people today already enjoy media that is streamed from services like Hulu.com to their PCs at home.

In almost every respect, Cisco sees the future as one in which every device is connected to the Internet, where even the simplest and least expensive devices can access information via an IP network. This vision of the future requires not only fast connections so that individuals can access content quickly, but also intelligent and efficient data centers where information and applications can be housed and processed.

Data center virtualization is by no means a new concept. Cisco’s competitors HP and IBM have already been selling solutions to help companies do this. And many others are also getting into the market.

While Cisco says that it will help its customers become more efficient and consumers may eventually benefit from access to new applications on cheaper devices, Cisco also benefits from the strategy. For one, Cisco will benefit from selling its data center products to companies and service providers, which offer these virtualized services. But it also benefits because putting more content in the “cloud” will also increase traffic on the network, which means that Cisco will sell more of its IP routers and switches.

On its own, this announcement is a big deal for Cisco. The company, which has spent the last 20 years building infrastructure equipment, is now competing in the computer server market against some of its current partners like Hewlett-Packard and IBM. But as the company’s executives pointed out during a press and analyst event to unveil the new strategy, Cisco never announces just a product.

“It’s like offering to sell someone a kit to build acar or actually selling them a car,” David Lawler, Cisco’s VP of platform product marketing, said in a phone interview after the event. “Anyone could build a car from a kit. But we sell the car right off the lot.”

So it shouldn’t come as a surprise that the company’s new data center server strategy announced Monday is fueled by a grand vision to not only help its corporate customers improve efficiency and reduce costs, but also transform how average consumers can access loads of cool new applications on cheap devices.

Cisco has long been at the forefront of building faster and higher capacity networks. As the world’s largest maker of gear that shuttles traffic throughout the Internet, the company essentially built the information superhighway.

Cisco's virtualization push could benefit consumers

Google Android leader Andy Rubin demonstrated Flash on the T-Mobile G1 Android phone at an Adobe conference in November.

Adobe is working on a version of Flash for Google’s Android mobile phone operating system, but it turns out it’s not the only one.

On Wednesday, embedded software specialist Bsquare plans to detail its work in the area. “Bsquare has been tapped by a global tier 1 carrier to port the Adobe Flash technology to the Android platform,” according to a message sent to reporters about the news. The company already has ported Flash to more than 100 embedded devices.

Bsquare bringing Flash to Android phones

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