Cisco and Parallels: Building a Cloud Services Marketplace

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The Service Provider Opportunity

A world of many clouds is emerging with numerous service choices from a variety of cloud vendors. Businesses and governments are increasingly choosing public clouds for:

• Software services (e.g. CRM, Collaboration, Virtualized Desktop Infrastructure)

• Shared content (e.g. Regulatory Compliance, Data Clearinghouse)

• Demand overflow (e.g. Disaster Recovery, Seasonal IT surge)

In addition, new software aggregators are enabling organizations to find, purchase and consume services from one place. These trends are creating new opportunities for Service Providers (SPs) to offer cloud services from many sources with reliable delivery and consistent customer care. SPs can now rapidly on-board, bundle and provision services leading to a rich SaaS and IaaS portfolio, as well as leverage a variety of reseller channels to offer many types of tailored services. Most importantly, providers can build sustainable differentiation through synergy with their traditional strengths - secure, predictable infrastructure and a strong focus on service fulfillment. This opportunity is most evident today for mid-market and SMB customers.

Solving New Challenges

To realize this vision, Service Providers need to solve interrelated service and infrastructure challenges. Broadly they fall into three groups (illustration below):
1. Transforming software applications into manageable services. Every industry and geography has many preferred applications that businesses would like to consume as a service. Service Providers must be able to quickly incorporate new applications to extend market reach and differentiate solutions.
2. Bundling and charging for customized offers. Customers have different needs regarding service levels and pricing. Service Providers must be able to customize the performance of services such as CRM, productivity software, collaboration suites, on-line back-up and anti-virus services. But providers should not have to deliver every service themselves. In a world of many clouds, Service Providers must be able to connect quickly, securely and predictably to best-of-breed cloud partners, across heterogeneous environments.
3. Provisioning and managing the right resources to support customer expectations and SLAs. Service Providers need to be able to easily translate service requirements from clients or sites into orchestrated provisioning of compute, storage and networks. Managing and adapting the infrastructure for optimal service levels is essential.

The Cisco - Parallels Solution

Jointly, Cisco and Parallels have created an integrated service aggregation solution that combines service on-boarding, brokering, and provisioning across the world of many clouds. The solution focuses on the immediate needs of SMBs and accommodates the increasing customization needs of larger businesses.
With the help of Cisco integration services, Parallels Application Packaging Standard (APS) enables Service Providers to rapidly incorporate a wide range of existing cloud services and applications. With the predictability of Cisco's Cloud Intelligent Network, Parallels Business Automation connects and aggregates services across multiple clouds that are assured and billable. With the automated provisioning of Cisco's Virtualized Multiservice Cloud Data Center (VMDC), Parallels Operations Automation provisions service-specific resources on-demand. Cisco's end-to-end Automation and Orchestration tools ensure appropriate SLAs for new hosted and syndicated services.
This solution solves the challenges outlined earlier:
1. Transform software applications into manageable services

Parallels Automation supports APS - a set of specifications and standardized technologies that makes 3rd party applications and services easy to order, bill, provision and manage by integrating them into the Service Provider's OSS/BSS.

Over four hundred commercial applications are already supported by APS, which is being adopted by several Service Providers. Cisco Advanced Services works with Parallels to integrate APS with Service Provider OSS/BSS systems. Cisco Services and Parallels APS allow SPs to rapidly incorporate a wide range of existing cloud services and applications.

2. Bundle and charge for customized offers

Cisco Cloud Platform and Parallels Automation software work together to enable a rich SP portfolio of infrastructure and software services across multiple, specialized clouds.

Parallels Automation allows providers to build customized service plans which customers can order from an on-line store front. For each of these services, Parallels Business Automation (PBA), enables multi-tier resource usage accounting, charging and billing. SPs can use PBA to handle ordering, upselling, marketing, service management, billing, fraud management and payment collection.

Cisco Cloud Intelligent Network can extend these capabilities, across multiple clouds to enable a choice of best-of-breed, aggregated services. These services can rapidly establish secure, predictable and efficient connections to other clouds and data centers - including on-demand per-tenant VPNs, MPLS/VPLS, VM migration and WAN optimization. Cisco provides an open, modular network management stack for cloud that coordinates and automates these connection capabilities according to service policies on a per-tenant basis and scaled without theoretical limits.

Using this combined solution, a major Service Provider in the Americas has already adopted Cisco's leading collaboration and cloud infrastructure solutions, Webex and IaaS, and bundled them with hosted SaaS offers from recognized ISVs. By offering these services through the Parallels on-line store-front, the SP is offering tenant customized services with varying service levels based on service plans. This approach enables SPs to capture additional revenue, both through incremental value to existing customers and through new services to new markets.

3. Provision and manage the right infrastructure

Cisco and its partners provide a complete Automation and Orchestration suite that executes the provisioning requirements. It translates service requirements and workflows into configuration of both physical and virtual resources including virtual machines, LAN segments, firewalls, load balancers and application optimization. The suite also provides transparent manageability and visibility of allocated and available resources.

Cisco Automation and Orchestration supports the Cisco Virtualized Multi-tenant Data Center architecture (VMDC), a tailored reference architecture for cloud design including compute, fabric, switching and routing. VMDC provides design guidance for scalable, secure, resilient cloud infrastructures serving multiple tenants.

Parallels Automation integrates with Cisco Automation, Orchestration and VMDC to fully provision Compute and Networking based on requirements for tenants and SLAs. Parallels Operations Automation (POA) provides highly automated provisioning and de-provisioning of cloud services, complete operations management and delegated cross-platform management of the virtual infrastructure. POA includes client and site templates, which predetermine resource-allocation parameters for the domains and/or clients. It also provides an intuitive customer self-service interface.

Cisco Powered Integration

Cisco can help Service Providers integrate both Parallels and Cisco technologies into their existing OSS/BSS systems with a range of Advanced Services. Cisco has the expertise to assist Service Providers with on-demand analysis, portfolio strategy, service creation and business case analysis. By leading and priming the entire delivery engagement, Cisco can rapidly integrate multiple partners and accelerates the deployment so that new SaaS and IaaS services can be offered more quickly. These services enable Service Providers to offer hybrid deployments combining delivery from multiple clouds at both the infrastructure and application level.
Cisco also provides the option of a Build-Operate-Transfer model. This includes:

• Build, covering Infrastructure (Network, Compute, Storage, Hypervisor), Automation and Orchestration (Parallels Portal/Marketplace/Catalog/Orchestration for SaaS and IaaS services) and Operations & Management (tools for Fault and Performance Management)

• Operate, once the solution build moves into production. This includes Tier-2/3/4 helpdesks at a local Cloud Operations Center.

• Transfer, where knowledge transfer is provided to Service Provider teams from both build and operate phases.

A winning go-to-market strategy is vital to the success of any Service Provider public cloud initiative, particularly if the aggregator and reseller business is new for the Service Provider. Cisco's joint SP go-to-market offering leverages Cisco's cloud programs - providing sales enablement and joint marketing.
A market transition to the world of many clouds is creating substantial new Service Provider opportunities to leverage and offer new SaaS and IaaS services. Cisco and Parallels have created an integrated services and infrastructure platform for hosting and syndication. Using the platform, Cloud Service Providers can rapidly broker, provision and on-board services and applications - such as Cisco IaaS, Hosted Collaboration Solution and Virtualization Experience Infrastructure, as well as building up a rich SaaS portfolio. Unique synergies between Parallels' service automation and Cisco's cloud and network infrastructure automation will enable Service Providers to:

• Quickly bundle services and applications into richer, billable offers

• Improve service levels through enterprise-grade security, dynamic scaling and customized service assurance

• Deliver consistent customer care across a diverse service portfolio

To Learn More

* About Cisco cloud solutions for Service Providers, please visit:
* About Parallels automation, please visit:


Parallels is a worldwide leader in virtualization and automation software that optimizes computing for consumers, businesses and service providers across all major hardware, operating system and virtualization platforms. Founded in 1999, Parallels is a fast-growing company with more than 900 employees in North America, Europe and Asia. The company offers a wide range of virtualization and automation solutions to more than 200 first-tier service providers, helping individuals and organizations of all sizes realize the benefits of optimized computing.


Cisco (NASDAQ: CSCO) is the worldwide leader in IT that helps companies seize the opportunities of tomorrow by proving that amazing things can happen when you connect the previously unconnected. One of Cisco's key differentiators has been our ability to capture market transitions which drive innovation that enables our customers' long-term success. At the heart of these transitions - cloud, mobility, video, any device and social - is the network. Cisco's vision is to become our customers' most strategic business partner by delivering intelligent networks and technology and business architectures built on integrated products, services, and software platforms which enable our customers' success. Cisco has shaped the future of the Internet by creating unprecedented value and opportunity for our customers and ecosystem partners and has become the worldwide leader in networking - transforming how people connect, communicate and collaborate.