Cisco Is Shutting Down Its Public Cloud, Exploring Hybrid IT Strategy

Cisco just confirmed it’ll shut down its Intercloud by March 2017. Intercloud was supposed to be Cisco’s move in public cloud, addressing both businesses and service providers. But Cisco learned the painful lesson of the cloud, same lesson learned by HPE which shut down its Helion public cloud a year ago and Verizon which shut down its cloud earlier this year. On its statement, Cisco explained:

Cisco has evolved its cloud strategy from federating clouds to helping customers build and manage hybrid IT environments.

It appears Cisco realized that hybrid cloud may be its answer to Amazon, Microsoft and Google. It may have learned from Rackspace, which abandoned its cloud product and turned to partnering with Amazon, a strategy shift which paid off big time a few months ago. VMware is another datacenter giant that realized it’d better off partnering with Amazon for cloud services, and announced partnership a couple of months ago.

With open source taking over networking, Cisco foresees rough times also on traditional networking side. The big guys go as far as building their own datacenters from the ground up from simple hardware, skipping Cisco’s expansive purpose-built high-end boxes.

While many abandon their public cloud aspirations, it’s interesting to see that last month Oracle launched bare metal cloud services, which is in fact just the first step of its new cloud strategy announced back in September. Will it succeed where the others have failed?

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