(Reuters) - Cisco Systems Inc plans to offer cloud computing services, pledging to spend $1 billion over the next two years to enter a market currently led by the world's biggest online retailerAmazon.com Inc.
Cisco said it will spend the amount to build data centers to help run the new service called Cisco Cloud Services.
Cisco, which mainly deals in networking hardware, wants to take advantage of companies' desire to rent computing services rather than buying and maintaining their own machines.
The company said it plans to deliver the service with and through partners including Australian telecom service provider Telstra, tech distributor Ingram Micro Inc, and Indian IT company Wipro Ltd.
"Customers, providers and channel partners ... want to rapidly deploy valuable enterprise-class cloud experiences for key customers -- all while mitigating the risk of capital investment," Rob Lloyd, Cisco's president of development and sales, said in a statement.
Cisco's plans were first reported by the Wall Street Journal.