Cisco On The Intercloud Opportunity: 'We Have Created A Tornado'


Talk about Cisco's pricing model for Intercloud.

"Our strategy is not to follow AWS on the race to zero. If you look at what they are doing, it's clearly a line grab and they are cutting prices and strategically losing money. Cisco does not believe in strategically losing money.

History shows that market courses eventually kick in and I would argue that we are starting to see that now with people like Rackspace asking for money. I think a lot of the public cloud plays that have been rewarded by the stock market -- financially, the wheels on those cars are shaking because this is a really expensive game to keep on building data centers and to keep on dropping prices. It's not the strategy we believe in and it's not a strategy that deliver partners profitability and partner sustainability either."