Cisco announced this week that it would be shutting down its cloud service, known as Intercloud. After investing $1 billion USD into the project, they have decided to call it quits. The service will stop in March of 2017.

At this point they claim that they will be moving their apps to a different cloud provided, most likely AWS or Azure, the two leaders in the cloud market.

After launching Intercloud in 2014, Cisco had determined that the necessary investment was too much to keep up with. Microsoft had recently declared that each datacenter in its Azure network cost $1 billion USD to build. That’s a heavy price tag, and apparently the price to stay in the game.

Though Cloudaxis is an AWS partner, and this might be a good thing for Amazon (and Microsoft) we also realize that this is not a good thing for the industry. More competition would bring more innovation and lower prices. That being said, Microsoft and Amazon continue to drop their prices on cloud resources, and while there are at least two players left in the game, the fight should continue…