Cisco charges onto the cloud -

Networking giant Cisco has said that it wants to offer cloud computing services and is writing a billion dollar cheque over the next two years.

Needless to say, Cisco has been running late and the market currently led by the world's biggest online retailer Amazon.com which does not seem to be giving up.

Cisco said it will build data centres to help run the new service called Cisco Cloud Services.

Rob Lloyd, Cisco's president of development and sales said that everybody is realising the cloud can be a vehicle for achieving better economics and lower cost.

However, he added that it did not mean that Cisco was planning to go head-to-head with Amazon, yet.

Microsoft cut prices for hosting and processing customers' online data in a bid to take on Amazon. So far, it has not made much headway.

Cisco said that it will start to discuss the new service today at a conference with its customers.