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Cisco won’t take on Amazon in cloud

Cisco Systems won't try to compete with pay-as-you-go cloud computing providers such as Amazon, and instead will sell its infrastructure to those companies and provide its own software as a service.

The company sees virtualization as the next major computing model and its own Unified Computing System as the first step toward a fully virtualized data center, Chief Technology Officer Padmasree Warrior said in a briefing Monday during the Cisco Live user conference in San Francisco. The company's presence in both enterprise and service provider networks makes it the ideal partner for companies adopting cloud computing, because they want to gain cloud benefits such as scalability and disaster recovery without pushing out control of all their infrastructure, she said.

Cisco is positioning itself in the cloud world as all major vendors find their places there. Warrior said her company's approach differs from those of rivals Hewlett-Packard and IBM because those vendors are moving into the sale of cloud computing resources. Cisco doesn't see a big enough opportunity in that business, she said.

There are four layers in cloud computing, Warrior said: software as a service (SaaS), development platforms as a service, capacity as a service, and the underlying infrastructure for providing those services. Cisco already provides software as a service, in the form of its WebEx collaboration and IronPort security products. Its WebEx Connect offering for third-party application development is a platform as a service. Cisco will leave the business of selling raw capacity to others, while supplying the infrastructure for those kinds of companies, Warrior said.

With Cisco-based cloud infrastructures available for hire, enterprises will be able to hold on to some of their own resources while tapping into public clouds and smoothly moving data, applications and computing workloads between the two, according to Warrior. Cisco's Unified Computing System, which combines the company's new blade server platforms with networking and storage elements, is a step toward that capability, she said. It's a pre-integrated architecture that removes the burden of manual integration from the enterprise IT department, according to Cisco. The company has already sold UCS to some customers, Warrior said.

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