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Economics Benefits of Cisco’s Cloud Strategy

Mar 15, 2013

Cloud computing enables IT to be delivered as a service, whenever and wherever it is needed, from central, secure, public and private data centers. Agencies are looking for cloud architectural solutions to reduce costs, reach new efficiency levels, and facilitate innovative business models that promote revenue growth and increase competitive differentiation.

In this document, ACG Research models the underlying infrastructure of Cisco’s cloud portfolio. For simplicity, we will consider a private cloud implementation of cloud infrastructure compared with individual virtualized data centers as a baseline. The model includes expected benefits from taking advantage of the end-to-end infrastructure and by optimizing services across public and private clouds.

We measure the benefits in three ways:

• Service and application provisioning time
• Cloud service delivery total cost of ownership (TCO)
• Maintenance expense share of the IT budget

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