Internet giant Google and Cisco Data Systems, have teamed up to create a hybrid cloud computing solution for the enterprise market.
The move aims to loosen Amazon’s stranglehold on the cloud provision business and help grow Google and Cisco’s customer base – and profits.
Google shares closed 0.3% higher at the end of the US trading session Wednesday. Cisco ended 0.8% lower.
Tie-up benefits both parties
Both Google and Cisco posted announcements on their respective websites Wednesday, detailing the plans and what it means for their individual businesses.
“Together, we’re working on a complete solution to develop, run, secure and monitor workloads, enabling customers to optimize their existing investments, plan their cloud migration at their own pace and avoid lock-in,” said Nan Boden, Head of Global Technology Partners at Google Cloud.
“Developers will be able to create new applications in the cloud or on-premises consistently using the same tools, runtime and production environment,” he added.
“Our partnership with Google gives our customers the very best cloud has to offer— agility and scale, coupled with enterprise-class security and support,” said Chuck Robbins, chief executive officer, Cisco.
"We share a common vision of a hybrid cloud world that delivers the speed of innovation in an open and secure environment to bring the right solutions to our customers," Robbins added.
Open for business 2018
The joint venture cloud provision plan, comes as Amazon is the dominant player in the industry. Right now, Amazon accounts for some 34% of the market. Google is a distant 4th, behind Microsoft and IBM, with just 5%.
Both firms bring their own unique mix of skills and connections to the partnership and analysts are anticipating it could work well.
Early customers will be able to begin using the new, Google-Cisco hybrid cloud solution, sometime in the first six months of 2018. It will then be open for a broader audience in the second half of next year.