Microsoft Corporation (NASDAQ:MSFT), Cisco Systems, Inc. (NASDAQ:CSCO) Come Together Target Cloud Vendors

Microsoft Corporation (NASDAQ:MSFT) and Cisco Systems, Inc. (NASDAQ:CSCO) are themselves vendors of cloud services. However, the companies believe they can tap more opportunities in the space by teaming up to target other cloud vendors. The collaboration of Microsoft and Cisco is expected to mostly drive hybrid cloud.

Learn what the indicators are telling the analyst about MSFT.

Deal driver

There are a number of reasons Microsoft Corporation (NASDAQ:MSFT) and Cisco have thought it wise to target cloud vendors jointly. However, one of the major reasons for that step is that many companies are already using software based on Microsoft’s Windows OS.

Despite the increase in alternative open-source software and other variations, there is still a big community that is wedded to Windows-based apps. According to Cisco’s president of development and sales, Robert Lloyd, Windows is at the heart of many business and government applications.

The collaboration will see the companies giving cloud vendors access to Microsoft’s Window Azure Pack and networking hardware from Cisco. The collection of software and gears is expected to enable cloud vendors offer services similar to Microsoft’s Azure.

The two companies intend to reach out to carriers and other cloud vendors with their wholesale cloud solutions. According to Microsoft Corporation (NASDAQ:MSFT)’s Aziz Benmalek, the company is seeking to enable service providers to offer hybrid cloud.

Microsoft Corporation (NASDAQ:MSFT) competes with other cloud providers such as Google Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN). Cisco also has a more cloud-focused project known as Intercloud, to which more than 14 cloud vendors are expected to be added to bring the total number of providers that use the service to 60.

Competing partners

While Microsoft Corporation (NASDAQ:MSFT) and Cisco have found away to collaborate in cloud business, the companies are competitors in other cloud areas. They compete mostly in collaboration applications and online communication.

Other Cisco partnerships

The deal between Microsoft Corporation (NASDAQ:MSFT) and Cisco is similar to what the latter has already inked with other technology companies. Cisco has partners with the International Business Machines Corp (NYSE:IBM) and EMC Corporation (NYSE:EMC) to provide cloud vendors with hardware and software.

About the Author

Erica is a graduate of New York University's school of Journalism. She joined US Markets Daily as a general assignment reporter in January of 2008.

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