Cisco and Telstra: ideal cloud companions

The cloud computing alliance between Telstra and Cisco Systems highlights why scale is everything in the market. For Telstra the deal is all about freeing up capacity for software and services… and Asia.

Telstra and Cisco Systems have announced a first-of-its-kind alliance that signals an inflexion point in the evolution of the global infrastructure-as-a-service (IaaS) market. Even as Australia’s largest telco, Telstra has decided that the economies of scale required for sustainable success as an IaaS provider are beyond its means. Rather than invest in a potentially sub-scale home-tailored cloud computing infrastructure, Telstra has decided to partner with a global provider of ready-to-use cloud platforms.

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