& cplSiteName &

Cisco's Cloud Bet: What's in It for SPs?

Mitch Wagner
3/25/2014
50%
50%

Service providers struggling to implement a cloud strategy can look to a buddy for help. Cisco wants to be that buddy. Cisco this week introduced Intercloud, a strategy to enter partnerships with service providers to go to market together with cloud services for the enterprise. Cisco plans to invest $1 billion over the next two years on infrastructure to implement Intercloud. (See Can Cisco Help SPs Offer Cloud-based Apps?)

Together, Cisco and its partners will offer application services such as virtual desktop, firewall, remote management, and more.

"When you look at the service provider world, it's pretty clear that as the market matures it's impossible to build everything in-house," Fabio Gori, Cisco director of cloud marketing, told Light Reading.

The business opportunity for service providers is twofold: To resell Intercloud to the SP’s own customers at a markup, and also to build addition cloud offerings using Intercloud as a platform, Cisco says.

Cisco and Service Providers, Buddies
(Source: Julie Brown)
(Source: Julie Brown)

But partnering with Cisco could present problems for service providers looking to differentiate from their competitors, Heavy Reading analyst Rosalyn Roseboro said. “Operators keep saying they’re concerned about differentiating, but if they’re going to leverage a platform being offered to everyone, that doesn’t solve the differentiation issue,” she said. “Using the same stuff as everyone else is using doesn’t get them there.”

Service providers might well succeed as cloud brokers, helping customers figure out the best cloud services for their workload, Roseboro said. In some cases, it might make sense for enterprise customers to run Amazon Web Services. In others, enterprises might be well served on Intercloud, some other platform, or the service provider’s own cloud. Service providers might partner with Cisco for small and mid-sized enterprise businesses, but handle the big customers on the SP’s own network, Roseboro said.

Internet of everything
Cisco sees Intercloud as an opportunity for service providers to take advantage of the Internet of Everything, with exploding demand by enterprises for services and bandwidth. "Some of these applications have to deal with billions of things and trillions of events," Gori said. "Any network, even the biggest in the world, will be destroyed by all this traffic coming in to even the biggest data centers." Cisco wants to help service providers beef up their networks and data centers to meet the onslaught.

Intercloud offerings from service providers will prominently feature the Cisco brand, Cisco says. The cloud fabric will be built on the Cisco Application Centric Infrastructure (ACI). (See Cisco's ACI Gets Physical With SDN.)

Intercloud will use Cisco's own data centers, along with its partners', to blanket the world. "We have no intention of building data centers all the way across the globe, and even if we wanted to, we would simply be an American company doing business with a foreign country," Gori said. "By working with local players we will have a more compelling proposition in the marketplace."

For a service provider like the Australian Telstra, one of Cisco's Intercloud partners, Cisco installs the entire stack, including ACI, open stack libraries, hardware, software, and interoperating with the service provider's existing business system. Cisco also operates the cloud infrastructure in that kind of partnership, Gori said.

Other partners will use the existing Intercloud infrastructure and connect over high-level APIs to offer applications to customers.

Cisco will have more details on Intercloud at his Cisco Live event in San Francisco, May 18-22.

Early reports about Intercloud positioned it as competitive with Amazon Web Services. But Cisco doesn't see it that way. Amazon provides bare metal virtual servers, so to speak, with an infrastructure as a service (IaaS) offering. Cisco is mainly offering application software as service (SaaS), a higher level than Amazon’s. Although Intercloud will also offer PaaS and IaaS, but those are not central to Intercloud, Gori said.

"Amazon has an infrastructure centric proposition, we have an application centric proposition,” Gori said. “We are not competing with Amazon. We are competing with other kinds of clouds. We are more like VMware, or HP Cloud.”

Among the services available from Intercloud are collaboration, security, network infrastructure management, virtual desktop, cloud DVR (see Cisco Cloud DVR Emerges), virtualized mobile Internet, virtual PCs, firewall and provider edge services, remote management, and energy management.

Of course Intercloud runs on teh Intarwebz.

— Mitch Wagner, West Coast Bureau Chief, Light Reading. Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile Follow me on Facebook Got a tip about SDN or NFV? Send it to mwagner@lightreading.com.


Want to learn more about SDN and the transport network? Check out the agenda for Light Reading's Big Telecom Event (BTE), which will take place on June 17 and 18 at the Sheraton Chicago Hotel and Towers. The event combines the educational power of interactive conference sessions devised and hosted by Heavy Reading's experienced industry analysts with multi-vendor interoperability and proof-of-concept networking and application showcases. For more on the event, the topics, and the stellar service provider speaker lineup, see Telecommunication Luminaries to Discuss the Hottest Industry Trends at Light Reading's Big Telecom Event in June.


(13)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
3/29/2014 | 12:03:41 PM
Re: Intercloud
Mitch, 

I'll take some pictures from Interop London for you. :D

-Susan  

 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/27/2014 | 6:40:48 PM
Re: Intercloud
Nice! I'll be in Las Vegas next week. To tell the truth, I like Vegas but I'd rather be in London. 
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
3/27/2014 | 3:21:02 AM
Re: Intercloud
Mitch, 

How nice that you are going to Interop. :D I will be looking forward to reading about your findings.

This year Interop is held for the first time in London in June as part of the London Technology Week. Needless to say I have already made arrangements to attend Interop London and the other shows. :) 

-Susan 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/26/2014 | 4:05:46 PM
Re: Intercloud
Susan - I don't know if I'll be going to Cisco Live. Right now I'm gearing up for Interop next week. 
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/26/2014 | 1:56:29 PM
Cisco's Cloud Bet: What's in it for SPs?
@sam masud, that is what I am seeing in this picture as well.  This is Cisco's vision which works fine for Cisco, but I am not sure that the customer is always going to want the Cisco defined packages; when they are other options available that serve their needs differently. 

I agree with you that the Internet of Things will be an opportunity; I see it more of a utility as well - but if Cisco is successful in building the functional networking, with the right pricing, they can be the leader.

But I don't see that as being in the SPs best interests - which is why I think the SPs will be in the strongest position to build a "solutions" role for themselves in selecting the best networking, etc., in addition to distinguishing their individual service packages and pricing.  I think SPs need to clearly establish their roles so they are the winners.

 
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
3/26/2014 | 1:30:02 PM
Re: Cisco's Cloud Bet: What's in it for SPs?
But as the Internet expands (exponentially?) with the Internet of Things will service providers want the high capex that comes with Cisco's gear--particularly if Cisco does not fully embrace SDN, which Cisco pooh-poohs?
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
3/26/2014 | 12:50:49 PM
differentiation
>  "Operators keep saying they're concerned about differentiating, but if
> they're going to leverage a platform being offered to everyone, that
> doesn't solve the differentiation issue," she said.

@ Mitch,  I can see where the HeavyReading analyst is coming from.

IMHO, the service providers can still differentiate on the apps they choose to offer on the Intercloud, the pricing models they choose to offer, the customer service levels they maintain and the web of ancillary services they build.
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/26/2014 | 12:08:29 PM
Cisco's Cloud Bet: What's in it for SPs?
Susan, Intercloud sounds like a "smart" networking solution for Cisco, doesn't it?  I think their vision with the "Internet of Things" is on target.

 
Susan Fourtané
50%
50%
Susan Fourtané,
User Rank: Blogger
3/26/2014 | 11:33:07 AM
Intercloud
Mitch, 

As we enter the Intercloud era the Cisco Live event in San Francisco sounds interesting. Are you attending? 

-Susan

 
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
3/25/2014 | 6:13:09 PM
Cisco's Cloud Bet: What's in it for SPs?-2
PS - Part 2 - when I am referring to networks, I am meaning solutions other than Cisco's.
Page 1 / 2   >   >>
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.