Two weeks ago we took a full position in Cisco Systems Inc. (CSCO) purchasing approximately 275 shares at $21.77. Cisco has recently released news that they will spend $1 Billion over the next two years to launch the world’s largest global intercloud. Cisco plans to use the money to build data centers to run their new service Cisco Cloud Services. Cisco believes that they will disrupt the market by offering unmatched capabilities such as bringing a network of partners within their intercloud, focusing on apps rather than infrastructure, and incorporating real-time analytics.
The market reacted extremely positive to this news as Cisco was up 3.5% today and 4% since the announcement. This expansion bolsters my belief that Cisco’s diversification into all areas of IP-based networking and its goal of reaching “Internet of Everything” will drive its share price.