& cplSiteName &

Cisco Set to Launch Cloud Services

Ray Le Maistre
3/24/2014
50%
50%

Cisco is set to unveil a cloud computing service on Monday that will pitch the networking technology giant against the likes of Amazon Web Services Inc. (AWS), according to a report in the Wall Street Journal.

And the router giant is looking to the telco sector to support the hosted offering, dubbed Cisco Cloud Services: It has already signed up Australia's Telstra Corp. Ltd. (ASX: TLS; NZK: TLS) and Canadian business services specialist Allstream Corp. as partners. (See Telstra Extends Cloud Capabilities With Cisco and Are Telcos Still Playing Cloud Catch-Up?)

According to the report, the vendor, which already sells its networking hardware to companies (such as telcos) that are building their own cloud services infrastructure, will invest $1 billion during the next two years on the data center infrastructure needed to support Cisco Cloud Services, which is due to be presented to potential customers today.

The move suggests that Cisco is feeling the impact of existing infrastructure-as-a-service (IaaS) offerings: As more companies sign up to use shared, hosted IT (compute, storage, networking) capabilities, so they have less need to invest in their own IT infrastructure, which for many includes networking hardware from Cisco.

By offering a cloud computing service, Cisco will, in effect, be leasing capacity on its managed infrastructure to enterprise customers, generating revenue from its products through a different business model.

The market for IaaS services is growing rapidly -- various industry projections put the annual growth at around 40%, while Cisco estimates the market was worth about $15.6 billion in 2013 -- and is starting to generate significant income for those that moved early. While Amazon doesn't report the revenues from its AWS division, analysts estimate that it generated sales of $1 billion in the fourth quarter of 2013.

Other companies that offer cloud computing services include Computer Sciences Corp. (CSC), Microsoft, Rackspace Hosting, Dimension Data, Verizon Terremark, CenturyLink Technology Solutions (formerly Savvis), HP, IBM, and many others. (See Verizon Scores Oracle Cloud Breakthrough, CenturyLink Cloud Goes Hyper, and Windstream Makes Regional Cloud Play.)

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/25/2014 | 5:45:28 PM
Re: Late to the party?
sam masud -  That's not so off-the-wall. Cloud in data center business are not so different from each other.
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
3/25/2014 | 2:55:00 PM
Re: Late to the party?
Mitch,

This might be totally off the wall, but Cisco already has a $5 billion data center business. Could it be be that offering cloud services in partnership with telcos like Telstra and Allstream is just a way for Cisco to further extend it data center business? Also a bilion dollar investment doesn't sound too bad if this whole Cisco cloud thing is being done with data center rival VMware in mind....

 
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/24/2014 | 11:36:55 AM
Re: Late to the party?

$1 billion doesn't sound like a lot, given Cisco's size and the size of this market. If the investment is as small as it sounds to me, you have to wonder how well Cisco can compete with entrenched competitors. Perhaps Cisco is expecting its telco providers to kick in large investments as well?

Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
3/24/2014 | 10:46:09 AM
Late to the party?
Business analysts today were saying that Cisco might be a little late to the party with cloud services, with some companies already somewhat entrenched. The other factor that business analysts were mentioning was that IBM and several other companies were saying they offer cloud now.

Add to that all of the recent cloud-related IPOs, the slices of the cloud pie are shrinking, so how much of it Cisco will be able to grab is questionable.
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
Brocade, Broadcom Merger in Doubt
Iain Morris, News Editor, 7/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
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.