But “it does not mean that we’re embarking on a strategy to go head-to-head with Amazon,” says sales president.
Cisco Systems is reportedly planning to enter into cloud computing service market and would invest about $1bn during the next two years.
The company intends to spend the amount for building up data centres which will operate the new service called Cisco Cloud Services, which would also be using computer rooms operated by partners.
Cisco development and sales president Rob Lloyd said companies are looking for different ways to get IT done.
"Everybody is realising the cloud can be a vehicle for achieving better economics [and] lower cost," Lloyd added.
"It does not mean that we’re embarking on a strategy to go head-to-head with Amazon."
The company plans to offer cloud services to telecom companies, which will then use the services in a package of Internet-based services.
Cisco has annual revenue of about $49bn, which it earned selling equipment that transfers data among servers in corporate-computing hubs and between those machines and the Internet.