Skip to main content

Cisco announces plans for $1bn investment in global cloud infrastructure

Cisco is planning on spending $1 billion (£610 million) on forcing its way into the cloud market.

The networking giant is apparently going to use that money to build data centres and eventually deploy Cisco Cloud Services, which will offer, well, cloud services to businesses, unsurprisingly.

This move was reported by the Wall Street Journal, which quoted Rob Lloyd, president of development and sales at Cisco, as saying: "Companies are looking for different ways to get IT done. Everybody is realising the cloud can be a vehicle for achieving better economics [and] lower cost."

He also clarified that the company wasn't embarking on a strategy whereby Cisco would butt heads with cloud giant Amazon. Cisco is planning to go after the higher-end of large enterprise and government organisations when it comes to its cloud services.

Clearly, though, the sort of revenue Amazon's cloud business pulls in (some $3 billion, or £1.8 billion per year) is a big carrot as far as this venture goes.

Cisco is looking to diversify as it has been struggling somewhat of late, and last month it delivered rather disappointing fiscal news, with the company suffering from a global hardware slowdown in the face of US equipment being looked at unfavourably by many, given the ongoing furore over NSA spying (and its reach outside of the US).

More and more companies seem to be concluding that software and services, not hardware, is the place to be repositioning themselves for future growth.