Cisco Systems Inc To Invest In Cloud Computing

Cisco Systems Inc To Invest In Cloud Computing

A pledge of $1 billion was made by Cisco Systems Inc in the next two years as the company indicated that it aims to join the market currently dominated by Amazon.com Inc. The company will use the amount in creating data centers that will facilitate the operation of Cisco Cloud Services news service.

The company aims to make the most of the desire of companies is renting computing services instead acquiring their own equipment. The service will be delivered by the company in collaboration with its partners. Among its partners are WiPro Ltd of India, Ingram Micro Inc and Telstra of Australia.

Development and sales president of Cisco Systems Inc, Rob Lloyd, revealed that customers, channel partners and providers would like to easily set up business-class cloud experiences for their main clients. These companies aim to accomplish this while reducing capital investment risks.

Spending for business hardware started to go down around the world as companies attempt to manage with smaller budgets, unstable economies, and shift towards the use of cloud computing services. Outsourcing computing and data management needs result to a lesser demand for hardware.

Microsoft announced last year that prices in hosting as well as processing of online information of clients will be reduced. This is a strong challenge to the lead of Amazon in the cloud computing industry.

Share prices of Cisco Systems Inc increased by 0.28 percent during pre-market trading recently as it settled at $21.70.

Posted by James Fried on Wednesday March 26 2014, 5:02 AM EST. Ref: Reuters. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0