April 30, 2014

Cisco joins the cloud market

The hardware and software company will invest 1 billion USD over the next two years to build its expanded cloud business. Their cloud will be the world’s first truly open, hybrid cloud.

Companies are looking for different ways to get IT done,” said Rob Lloyd, Cisco president of development and sales. “Everybody is realizing the cloud can be a vehicle for achieving better economics [and] lower cost.”

Cisco’s global service will be built upon industry-leading cloud technologies and leverage OpenStack for its open standards-based global infrastructure and also a set of software services can be taken from him.

The company plans to deliver Cisco Cloud Services with and through Cisco partners, such as telecommunications companies, who will provide this service in their internet-based services, so Cisco can reach those end-users who would not otherwise.

Cisco says its spending will go toward building up data centers to help run the new service, called Cisco Cloud Services, which will also rely on computer rooms operated by partners. Business customers, Cisco said, can rely on the computing horsepower for information-technology tasks such as keeping tabs on customer orders and letting employees access their work computers from any Internet-connected machine.

Of course, this doesn’t mean that they are not fighting with Amazon, they want to go head-to-head with it.

It’s not easy transitioning a traditional technology company into a new cloud paradigm, but with this huge amount of money Cisco will be building out a lot data centers, which will be good for the data center industry in general.

The announcement didn’t include any specific information regarding their cloud service, so it is not clear what kind of services, at what prices, on which geographic region will be exactly provided.

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