Kerravala also sees Intercloud and Cisco Cloud Services as an enabler for cloud providers, rather than a competitor. "There could be channel conflict but Cisco's managed that historically," he says. "If done correctly, it's something their partners need. Cisco doesn't want to be one of the hundreds of cloud providers out there, it wants to be a catalyst for the cloud."
Kerravala notes that Cisco has already played in the cloud services arena through SaaS offerings such as WebEx Web conferencing, Meraki WLAN, Cisco Cloud Web Security, hosted collaboration, and cloud DVR.
Earle says application-focused cloud services that include mobility among public, private and hybrid clouds is where the money is."The [profit] margin is in the applications, and solving hybrid cloud issues," he says.