Boston, MA 05/21/2014 (wallstreetpr) – The giant provider of networking gears Cisco Systems, Inc. (NASDAQ:CSCO) thinks of cloud computing as a serious business that it cannot afford to stay away from if it is to maximize shareholder value. The company intends to up its cloud collaboration through partnerships, acquisitions and direct investments to support its goal. The excitement over cloud computing is in-line with the company’s Internet of everything aspiration.
Cisco will invest $1 billion within the next two years in building a global inter cloud that simply means a series of interconnected cloud computing environments that are linked by Cisco’s technology. Cloud computing is not only a booming business, but Cisco has all along wanted to become a significant player in the space especially in the face of the intense competition that the company continues to experience in the hardware business.
Towards building a cloud computing powerhouse, Cisco Systems, Inc. (NASDAQ:CSCO) intends to reach out to as many partners as can support its growth in the cloud through innovations that may be outside its traditional technology. Therefore, the company has already circled several start-ups that it intends to invest.
Startup Investment Program Boosted
Cisco Systems, Inc. (NASDAQ:CSCO) recently boosted its startup investment kitty. In addition to the $100 million that the company’s CEO John Chambers declared in January for investment in startups in relation to the Internet of Things (IoT), the company recently boosted that fund with another $150 million. The startups that may benefit immediately from the enhanced corporate venture fund include Ayla Networks Inc, Evrything Ltd and Alchemist Accelerator.
The strategy by Cisco Systems, Inc. (NASDAQ:CSCO) to look beyond its traditional business of making and selling networking gears and software is already paying off. The company recently reported an encouraging quarterly result despite the numerous challenges it continues to face in the hardware market.
Cisco earned a profit of $2.18 billion or $0.42 per share in its 3Q2014. Revenue in the quarter was $11.5 billion, beating Wall Street estimate of $11.4 billion. Although the latest results showed weakness compared with a year earlier quarter, the results were better than expected for the quarter.
The company projected stronger revenue guidance for the current quarter than Wall Street estimates.
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