Cisco’s New $US1 Billion Cloud Computing Plan Is Ingenious But Risky
March 30, 2014
Grazed from BusinessInsider. Author: Julie Bort.
Earlier this week, Cisco dropped a bombshell when it vowed to spend $US1 billion to build a brand new cloud service that competes with similar services from Amazon, Google, Microsoft, HP, IBM, VMware, and others. Cisco is calling it the Intercloud.
With the Intercloud, Cisco is joining all the other enterprise tech companies who are chasing the cloud market. That’s because companies today are using the cloud instead of buying new computers and software for new IT projects. They spent $US131 billion in 2013 on the cloud, Gartner says. They will $US174.2 billion in 2014 and $US235 billion by 2017, predicts market research firm IHS…
But in Cisco’s case, the Intercloud meant abandoning a promise of sorts it made three years ago not to build a cloud. Many of its biggest customers are service providers who sell cloud services themselves and Cisco didn’t want to compete with them. But that promise put it between a rock and a hard place…
Read more from the source @ http://www.businessinsider.com.au/inside-ciscos-1b-cloud-computing-plan-2014-3