Portugal Telecom and Cisco have collaborated to develop, deploy and launch cloud computing services based on the Cisco Unified Service Delivery data centre and network architecture.

The two companies have said that the cloud computing services based on an integrated Internet Protocol Next-Generation Network (IP NGN) and data centre infrastructure, which will enable businesses to reduce investment costs in information technology while accelerating innovation by adopting new services on a global scale.

Cisco said that the partnership will facilitate in execution of Portugal Telecom’s IP NGN strategy, which includes the roll-out of fiber to more than a million homes and businesses.

The first phase of this project is expected to start toward the end of 2010.

Portugal Telecom will provide a compute-as-a-service offering, providing businesses flexibility and lower costs than buying, installing and maintaining new servers in-house.

In addition, these cloud-based services are planned to be available for businesses in Portugal along with few selected Portugal Telecom international markets.

Portugal Telecom chief executive officer Zeinal Bava said that with advanced broadband and intelligent networks, they can deliver cloud-based IT services with none of the pains of traditional infrastructure projects.

"These innovative services will allow our clients to adopt more efficient business models and democratise technology services to large, as well as small and medium-sized businesses," Bava said.