
The cloud also presents networking challenges for cloud providers:

These external data centers, known as provider-hosted clouds, allow enterprises to gain infrastructure and resources on demand and become even more operationally efficient. Many enterprises have started deploying IT applications in virtualized data centers that are built and managed by third-party service providers. To save costs and become more agile, businesses small and large are increasingly virtualizing their data center infrastructures and applications.

Similarly, cloud providers themselves can use the Catalyst 8000V to offer enterprise-class networking services to their tenants or customers.
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Using familiar, industry-leading Cisco IOS ® XE Software networking capabilities, the Catalyst 8000V enables enterprises to transparently extend their WANs into provider-hosted clouds. The Cisco ® Catalyst ® 8000V Edge Software (Catalyst 8000V) is a virtual-form-factor router that delivers comprehensive SD-WAN, WAN gateway, and network services functions into virtual and cloud environments.
