Cisco, Telstra and partners to build the world’s largest network of cloud computing services

Network equipment maker Cisco Systems has announced plans to build what it claims to be the world’s largest network of cloud computing services, dubbed the ‘global Intercloud’, with a range of global partners, including Telstra.

The network is based on OpenStack open source cloud computing software, with Cisco anticipating it will invest $US1 billion in infrastructure for the project.

It will be distributed across datacentres owned both by partners, including Telstra, as well as directly by Cisco itself.

The networks links between datacentres will compete against existing cloud platforms from competitors including Akamai, Amazon, Google and Microsoft Azure.

In a statement, Cisco says the Internet of Everything is a key opportunity for the new project.

“The Cisco global Intercloud is being architected for the Internet of Everything, with a distributed network and security architecture designed for high-value application workloads, real-time analytics, ‘near infinite’ scalability and full compliance with local data sovereignty laws.

 “The networked connection of people, data, processes and things, dubbed the Internet of Everything, is expected to be a $US19 trillion economic opportunity in the coming decade.”

Telstra global enterprise and services executive cloud director Erez Yarkoni said in a statement the deal will help its customers manage their applications.

“Our customers will now have access to cloud infrastructure from a global leader, allowing them to select the cloud service to meet their requirements and scale network and cloud resources to deliver service agility, security and performance.”

Aside from Telstra, other partners include Canadian firm Allstream, European company Canopy, Ingram Micro, IT and managed services provider Logicalis Group, MicroStrategy, OnX Managed Services, SunGard Availability Services and Wipro.

The Cisco announcement comes a week after Telstra announced it would also offer services on Cisco’s global cloud communications platform and use Cisco’s Evolved Services Platform for its networking infrastructure.

The partnership forms part of an ongoing shift in strategic focus for the carrier, which has been moving away from fixed line telecommunications services to cloud services and NAS (network applications and services) aimed at the broader Asia-Pacific region.

The shift has seen Telstra acquire cloud-based services businesses O2 and NSC, form a cloud computing joint venture with Telkom Indonesia and begin offering a cloud-based multipoint video conferencing service called Blue Jeans Network in Australia.

Telstra recently sold a 70% stake in its Sensis directory advertising business to US-based private equity firm Platinum Equity for $454 million.

The telco also divested its stake in Hong Kong-based mobiles business, CSL, to HKT Limited for $US2.425 billion in December of last year.