It looks pretty certain that Cisco will be bringing x86 server blades (code name: California) to market in the next year, and probably sooner rather than later.
There is suggestion that they may announce something at VMworld Europe 2009. This article from Virtualization.info gives more information and informs that Cisco’s blade offering will potentially accommodate a large amount of memory (like HP’s semi-new BL495c x86 virtualization server blade). This tends to indicate it will be targeted at the virtualization market – most likely with focus on VMware ESX due to Cisco’s significant financial share investment in VMware.
The Register have also covered this here.
One to look out for.