Arik Hesseldahl

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Cisco, BMC Team Up in the Cloud

Networking giant Cisco Systems and software maker BMC say they’re entering a strategic alliance around cloud computing products.

The deal calls for the pair to align their development plans so that they can offer combined products. The first fruit of the alliance is their Integrated Cloud Delivery Platform aimed at service providers and large companies looking to build their own private cloud installations.

They promise to take much of the hassle out of building and deploying cloud services: It will be easier to turn on and configure new services, and customers will be able to manage their services on their own via a self-service portal. Cisco has also agreed to become a reseller of two BMC products on its Cisco Unified Computing System.

Cisco shares are up more than two percent today, primarily on a positive note from Ittai Kidron at Oppenheimer & Co. Tiernan Ray at Barron’s notes that Kidron has gone through several Cisco product lines, adjusting estimates along the way. One Cisco product he likes? You guessed it: The Unified Computing line.

Cisco shares have been struggling since the company sent mixed signals with its first-quarter earnings. Meanwhile, BMC shares are down.