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Cisco Goes To The Cloud
April 4, 2014 by admin
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Cisco Systems Inc will offer cloud computing services, pledging to spend $1 billion over the next two years to make a foray into a market currently dominated by the world’s biggest online retailer Amazon.com Inc, the Wall Street Journal reported.
Cisco said it will spend the amount to build data centers to help run the new service called Cisco Cloud Services, the Journal reported.
Cisco, which mainly deals in networking hardware, wants to take advantage of companies’ desire to rent computing services rather than buying and maintaining their own machines.
Enterprise hardware spending is dwindling across the globe as companies cope with shrinking budgets, slowing or uncertain economies and a fundamental migration to cloud computing, which reduces demand for equipment by outsourcing data management and computing needs.
“Everybody is realizing the cloud can be a vehicle for achieving better economics (and) lower cost,” the Journal quoted Rob Lloyd, Cisco’s president of development and sales as saying.
“It does not mean that we’re embarking on a strategy to go head-to-head with Amazon.”
Microsoft Corp last year said it was cutting prices for hosting and processing customers’ online data in an aggressive challenge to Amazon’s lead in the growing business of cloud computing.
Cisco could not be immediately reached for comment by Reuters outside regular U.S.business hours.
IBM Moves Into Oracle And HP Turf
Big Blue wants to take on competitors such as Oracle and Hewlett Packard by offering a cheap and cheerful Power Systems server and storage product range.
Rod Adkins, a Senior Vice President in IBM’s Systems & Technology Group said the company was was rolling out new servers based on its Power architecture with the Power Express 710 starting at $5,947. He said that the 710 is competitively priced to commodity hardware from Oracle and HP.
Adkins added that IBM is expanding its Power and Storage Systems business into SMB and growth markets. The product launches on Tuesday. IBM said it will start delivering by February 20.