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Easing the Transition to the Cloud: Cisco Capital Earmarks $1 Billion in Financing

Guest Blog Post by Krisine A. Snow, President, Cisco Capital

The pressure for businesses to quickly adapt and innovate—to capitalize on new market opportunities and stay ahead of the competition—is increasing to achieve their business goals. And it is being felt not only by IT organizations, but by entire companies as businesses rely more and more on technology. Cloud computing in particular has had a profound impact on businesses today, emerging as a key technology requirement to foster innovation and growth.

In March 2014, Cisco announced that it would invest $1 billion to expand its cloud business over the next two years. Today, in addition to the expansion of Cisco’s Intercloud product offerings and partner ecosystem, Cisco Capital has earmarked $1 billion in financing for Cisco customers and partners to help them adopt the Cisco technologies they’ll need to transition to the cloud.

As the financing arm of Cisco, Cisco Capital has developed a number of programs into this investment that will focus on financing Cisco Application Centric Infrastructure, facilitating technology migrations and providing flexible payment structures. As these type of transitions can require sizeable investments for companies, financing provides a cost-effective way for organizations to invest in their business.

Why finance?

By leveraging financing, organizations can align technology investments to the ever-evolving priorities of the business. Financing allows businesses to:

  • Preserve cash that can then be reinvested into the business—spreading the cost of an IT investment over time conserves funds, enabling organizations to invest more heavily in departments such as R&D and ultimately speeding the pace of innovation.
  • Accelerate the return on investment— aligning cash outlay to solution implementation and revenue stream generation.
  • Adopt new technologies faster—with the ability to implement new technologies more quickly, businesses remain agile and ahead of the competition.
  • “Green” the business — provides a vehicle to dispose of retired or under-utilized assets in an environmentally conscious manner with end-of-life strategies and migration programs or recycle programs.

Cisco Capital Financing the Cloud Suite

Cisco Capital creates tailored financial solutions and offerings for customers and partners that complement Cisco’s products and technologies, and are designed to support how customers and partners buy and deploy them. As a part of the $1 billion commitment, Cisco Capital is providing four programs specifically designed to address cloud adoption and migration.

Designed for both end-user customers and cloud service providers (Cisco partners), Cisco Capital flexible payment structures offer payment deferral options of up to 12 months, affordable monthly rates and structured payment streams. These structured loans and leases finance complete solutions including hardware, software and services from both Cisco and non-Cisco complementary solution providers.

Also geared towards end-user customers and cloud service providers are low total cost of ownership (TCO) offers aimed for customers looking to adopt Cisco Application Centric Infrastructure, a foundation for Intercloud infrastructure. Developed with below market payment terms, this program enables customers to keep technology up to date and refresh when needed, ultimately lowering TCO and the long term cost of maintenance.

Specifically for qualified cloud service providers Cisco Capital has developed two tailored programs including Accelerate Loans and Monetization of Managed Services. With an Accelerate Loan, no payments are required during the first 12 months in which the cloud data center is being built, allowing the service provider to align payments to the solution deployment and revenue generation.

The Monetization of Managed Services offering allows qualified cloud service providers to acquire the technology needed to deliver managed services solutions to customers without incurring up-front cost or debt through an asset light approach.   Key benefits include alignment of expenses to revenue for optimized cash flow and potential relief from asset disposition obligations at the end of the term.

While there are a number of strategies businesses can employ when planning for such a large-scale technology investment, Cisco Capital is uniquely positioned to help Cisco customers and partners embrace the transition to the cloud. Because Cisco Capital has such a deep understanding of the products, services and overall solutions being offered by Cisco, we are able to create customized financing solutions that will help our customers and partners adopt and deploy technologies like Intercloud in the most efficient and cost-effective way possible.

For more information, visit: Financing the Cloud

Disclaimer: Eligibility for financing is subject to standard underwriting procedures.

 

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Intercloud, The Next Internet Starts Here

Thirty years ago, two engineers – Cisco’s founders – solved a connectivity problem between two network islands on the Stanford University campus, and paved the way for three dramatic decades of Internet-driven innovation.

Today, there’s hardly an aspect of our lives that isn’t touched by the Internet. For large and mid-size enterprises, government and education, the Internet has forced major transitions and none has been more transformative than cloud.

Organizations are adopting cloud in all its forms – infrastructure-as-a-service to solve their workload requirements, software-as-a-service for new application needs – and they are leveraging the cloud to create new product and service innovations with mobile, collaboration and analytics solutions. According to industry analysts, the cloud market will top $144 billion in 2016 and has more than doubled since 2012. (Source: Cisco Market Estimates, July 2014)

The impact of cloud is unquestionable. Our customers and partners know they can leverage the cloud to fuel top-line growth by improving their business agility and reach, and by enabling new product service innovation for their customers and citizens. They also recognize that cloud can improve their bottom-line economics, foster innovation and drive economic growth and productivity.

But cloud is presenting as many challenges for IT departments and cloud service providers as it is opportunities.

Today, the lack of ability to connect public clouds, and to move workloads and associated policies between clouds, coupled with an inability to manage public and private clouds together as a single capability, prevents IT organizations from buying cloud services from any vendor they choose and managing these services as if they were part of their extended private cloud.

IT departments also need to enable business globally while operating within the constraints of national and regional regulations governing data privacy, security and data sovereignty. Today’s largely global (but not local) cloud solutions don’t provide this either.

Read More »

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Application Enablement and Innovation Leveraging Linux Containers

Linux containers and Docker are poised to radically change the way applications are built, shipped, deployed, and instantiated. They accelerate application delivery by making it easy to package the dependencies along with the application. That means that a single containerized application can operate in different development, test and production environments and platforms (physical and virtual). While the concept of containerization is not new, the benefit of using containers to pull together all the application components (including dependencies and services) into a package for application portability is. As continuous integration and delivery require a very agile Software Development Lifecycle (SDLC) process to move from development to production, containers provides the perfect abstraction to deploy and test across the various platforms. Application containers make it very easy for applications to be deployed on bare metal servers, virtual machines, and public clouds. The reason why containers are relevant Read More »

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Business Continuity and Workload Mobility for Private Cloud (Cisco Validated Design-Part1)

As a Cloud Architect, I’ve had the privilege to work with CTOs and CIOs across the globe to uncover the key factors driving Business Continuity and Workload Mobility across their cloud infrastructures. We’ve worked with enterprises, large and small, and service providers to answer their top five concerns in our new Business Continuity and Workload Mobility solution for the Private Cloud.

1) Can you provide business continuity, workload mobility, and disaster recovery for my unique mix of applications, with lower infrastructure costs and less complexity for my operations teams?  Yes.

2) Can you provide a multi-site design that reduces business outages and costly downtime, allowing my critical applications to be more secure and available? Yes.

3) Can my operations teams perform live migrations of applications across sites while maintaining user connections, security, and stateful services?  Yes.

4) Does your multi-site solution allow me to utilize idle standby capacity during “normal” operations, and reclaim that capacity as needed during an outage event?  Yes.

5)  Can your Cisco Validated Design greatly reduce my deployment risks and simplify my design process, saving my business significant time, money, and resources?  Yes.

 

A Proven Multi-site Design, Built on the Most Widely Deployed Cloud Infrastructure    

We addressed each of these pain points as we designed, built, and validated our new multi-site business continuity and workload mobility solution. Our multi-site solution is built upon Cisco’s cloud foundation, the Virtual Multi-service Data Center (VMDC) that’s been deployed at hundreds of the world’s top enterprises and service providers. In our latest VMDC release, we’ve extended our cloud design to support multi-site topologies and critical use cases for private cloud customers. This validated design simply connects regional and long-distance data centers within your private cloud to address some critical IT functions, including:

  • application business continuity across data center sites;
  • stateful workload mobility across data center sites, will maintaining user connections and security;
  • application disaster recovery and avoidance across data center sites; and
  • application geo-clustering and load balancing across data center sites.
Cisco business continuity and workload mobility for the private cloud -Cisco Validated Design

Choose the Cloud Infrastructure that Fits Your Unique Business Needs

The  VMDC Business Continuity and Workload Mobility solution (CVD Design Guide) is grounded in the reality of today’s cloud environment, providing different design choices that match your applications needs. We realize there is no “one size fits all” cloud design, that’s why we support both physical and virtual resources, multiple hypervisors and storage choices, and security compliant designs with industry certifications like FISMA, PCI, and HIPPA.

Key Factors Driving Business Continuity and Workload Mobility in the Private Cloud
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Banking in the InterCloud: Delivering Additional Computing and Storage

July 28, 2014 at 1:02 pm PST

Financial Services firms are being challenged and forced to change the way that their applications, information, content, compute, storage, and network resources are deployed and consumed. It is a multi-dimensional issue that is forcing financial services firms to change of how IT is delivered. They are beginning to look for ways to stretch their data centers, as they often need more compute and storage capacity than their own facilities provide, especially during those peak high-demand times. The move is toward the service delivery of IT through cloud computing, a dynamic and service-oriented delivery paradigm that organizes and allocates IT-enabled services to meet business demand as needed.

Challenges With Financial Services IT Delivery

Data centers are costly to build and operate, but there are times when you need more resources. Cisco’s InterCloud solution lets banks create a hybrid cloud to extend their data center and cloud capacity when needed. Through InterCloud, banks can store more data and have more computing power, operating just as if it were in an on-premises data center. InterCloud could also be used to augment current big data and risk/analytics environments that banks have deployed in recent years. In many cases, additional compute capacity is needed only for a short time in order to run certain risk models or to provide additional reporting for regulatory requirements. Read More »

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