Cisco planning to challenge Microsoft online

Bangalore: Cisco is in plans to compete with Microsoft by creating web-based alternatives, accelerating its web focused presence, Reuters reports. The networking giant will look forward to lock horns with Microsoft Office suite with an online office suite.

"Cisco will develop a service that would allow business users to create documents they could draft and share through its WebEx meeting and collaboration service," said Doug Dennerline, Senior Vice President, Cisco.

Microsoft's Office division had sales of $60 billion in the software company's last fiscal year. Though the internet-based alternatives to Microsoft Office were found about five years ago, corporate users have yet to embrace them. It could become big business, if the efforts gain success.

Google sells Google Apps, an internet-based alternative to Microsoft Office that includes a spreadsheet, word processor and presentation software. Design software maker Adobe Systems and privately held Zoho provide similar products.

Dennerline who manages Cisco's online collaboration products, says his interest lies in getting into the area."That is an interesting space. We are certainly thinking about that."

Dennerline conveyed Cisco's disinterest competing with Salesforce.com in selling online applications, which helps companies in managing sales and marketing activities, an area where analysts have long speculated about Cisco's ambitions.

Web-based application's is the segment where Salesforce is the biggest player. Gartner estimates a rise of about 30 percent in this segment that will touch $6.5 billion in 2009.

Cisco has extended its focus to a wider range of products including software and video products, such as a high-end video conferencing system called TelePresence and the WebEx service that facilitates online meetings.

"The expansion into new services would continue, including a TelePresence product for homes in the next one to two years," said John Chambers, Chief Executive of Cisco.

In the past, Chambers had mentioned plans for a consumer TelePresence system, but analysts? opine, that it would be hard for Cisco to come up with a cheaper version of the high-definition, life-size video conference system for corporate customers.

"On the one hand, make no mistake about it, we will stay focused on our core competencies, switching and routing. You will see a constant flood of product capabilities and directions coming in these areas," Chambers said.

"At the same time, we realize that the network has evolved," he added.