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 The Cisco Nexus™ 1000V virtual machine access switch is an intelligent software switch implementation for VMware ESX environments. Running inside of the VMware ESX hypervisor, the Cisco Nexus 1000V supports Cisco 
 ® VN-Link server virtualization technology, providing 
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• Policy-based virtual machine (VM) connectivity
• Mobile VM security and network policy, and
• Non-disruptive operational model for your server virtualization, and networking teams.
<a href="http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.html" target="_blank">http://www.cisco.com/en/US/prod/collateral/switches/ps9441/ps9902/data_sheet_c78-492971.html</a>
Someone just lost a bet with me on this as I knew this was only a matter of time before Cisco released a virtual switch.  Now time to start preparing for the new Virtual CCIE track ;-)

Cisco Nexus 1000V Virtual Switch