Cisco Cloud Revenues Jump 90% Amid Private Cloud, CSP Boom

August 16, 2012

2 Min Read
Cisco Cloud Revenues Jump 90% Amid Private Cloud, CSP Boom

By samdizzy

Cisco CEO John Chambers

Cisco Systems‘ cloud-related revenues jumped 90 percent in Q4 2012, and orders for cloud-related products were up 58 percent during the quarter, CEO John Chambers said amid an earnings call yesterday. So what’s driving Cisco’s (NASDAQ: CSCO) apparent cloud success? The answer involves private clouds, plus cloud services providers (CSPs) deploying Microsoft SharePoint, SAP and Oracle on Cisco cloud infrastructure. Here are insights from Chambers and Executive VP Rob Lloyd.

First, some background: Cisco’s Cloud Partner Program has tracks designed for cloud resellers, cloud service providers and cloud builders. In the enterprise market, Chambers said, Cisco and its channel partners are winning deals for “the vast majority of the true production clouds. Service provider sits even better.”

Lloyd added:

“So I think across our portfolio, John, the number one used case is private cloud. We’re seeing obviously the move towards converged infrastructure playing very well for our strengths with UCS [unified compute system] and the partners we have. The trend is our enterprise customers are looking for more benefits from automation and actually taking the benefits of virtualization even further.”

Cisco is also gaining momentum with Cloud Services Providers (CSPs), Lloyd asserted.

“Second most popular used case is for cloud providers, where they’re looking at provisioning and management as the number one area of focus. One of our use cases is extremely strong…it’s our own…hosted collaboration solution where we have dozens of service providers delivering call control as an enterprise class application from those centralized data centers.”

The third cloud use case involves “massively scalable data centers.” Also, Lloyd said, Cisco is winning deals involving Microsoft SharePoint, SAP, Oracle and virtualized environments. “And actually I think our strength is that we are bringing this infrastructure to enterprise class applications and matching service providers trying to drive services for business apps.”

Overall, Cisco announced record results for its fiscal year 2012, though there were some concerns involving TelePresence and collaboration revenues.

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