Cisco Systems Inc (CSCO) Unveils Energy-Saving Transceiver Power-Control Feature for Data Centers | CSCO stock news

Revolutionizing Data Center Sustainability with Cisco MDS 9000 Switches

Author's Avatar
May 29, 2025

Summary

On May 29, 2025, Cisco Systems Inc (CSCO, Financial) announced a significant advancement in data center sustainability with the introduction of a transceiver power-control feature in its MDS 9000 switches. This innovation aims to address the growing energy demands of modern data centers by reducing power consumption, thereby contributing to more environmentally responsible and cost-effective operations. The feature is designed to help organizations manage their energy usage more efficiently, aligning with broader sustainability goals.

Positive Aspects

  • Up to 32% energy savings for switches, leading to reduced operational costs.
  • Remote settings for easy power control operations.
  • Real-time inventory management even for administratively shut interfaces.
  • High reliability under power cycles without impacting failure rates.
  • Applicable to any type of SFP qualified on 64G devices, ensuring versatility.
  • Included in the base offering at no additional cost, enhancing value.

Negative Aspects

  • Older Cisco MDS platforms and competitive solutions lack this hardware capability.
  • Initial implementation may require adjustments in operational procedures.

Financial Analyst Perspective

From a financial standpoint, Cisco's introduction of the transceiver power-control feature is a strategic move to enhance the value proposition of its MDS 9000 switches. By offering significant energy savings, Cisco not only reduces operational costs for its clients but also strengthens its competitive edge in the data center market. The potential for reduced energy bills and compliance with environmental standards could drive increased adoption of Cisco's solutions, positively impacting the company's revenue streams.

Market Research Analyst Perspective

In the context of market trends, Cisco's focus on sustainability aligns with the growing demand for eco-friendly data center solutions. As organizations increasingly prioritize sustainability, Cisco's innovation positions it as a leader in the industry. The transceiver power-control feature addresses a critical pain point—energy consumption—making Cisco's offerings more attractive to environmentally conscious businesses. This move could enhance Cisco's market share and influence in the data center sector.

Frequently Asked Questions

What is the transceiver power-control feature?

The transceiver power-control feature allows Cisco MDS switches to turn off power to transceivers when a port is administratively shut down, reducing energy consumption.

Which Cisco platforms support this feature?

The feature is available on Cisco MDS 64G platforms, including DS-X9748-3072K9, MDS 9124V, MDS 9148V, and MDS 9396V.

How much energy can be saved with this feature?

Lab tests show that 34 Watts of power are saved for 24 ports in the admin down state, with higher savings for long-wave transceivers.

Is there an additional cost for this feature?

No, the transceiver power-control feature is included in the base offering at no additional cost.

Read the original press release here.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.