Cisco Plans for US$1 Billion Foray into Cloud Computing Services
Cisco has plans to invest up to US$1 billion dollars over the next two years to provide enterprise-level cloud computing services. Known as the Cisco Cloud Services, the company aims to deliver its offerings with and through Cisco partners.
The Cisco Cloud Services is targeted at businesses looking to rent cloud computing services, instead of purchasing and maintaining the necessary IT infrastructure themselves.
According to the Wall Street Journal, this will put Cisco, and its partners, in direct competition with Amazon. The latter has been acknowledged as both the pioneer and leader in this market of leasing cloud computing services.
This move by Cisco underscores its attempts to open new markets to shore up its bottom line. The Wall Street Journal reported the company has suffered a slowdown in orders from emerging markets, as well as corporate customers who are holding their new purchases. For now, the partners onboard with Cisco include Australian service provider Telstra; European cloud company Canopy, and wholesale technology distributor Ingram Micro Inc..