The networking giant's gain easily outpaced the broader tech industry as Nasdaq stocks rose just 0.08%.
On Monday, Cisco announced what it described as the "world's largest global intercloud," an open network of clouds hosted on global data centers run by the networker and its partners.
The San Jose, Calif.-based firm has been beating the drum about the openness of its cloud technology, which uses OpenStack, an open source cloud computing software.
"By building a network of OpenStack-based clouds among partners, CSCO could enable enterprises to more easily move workloads from one Intercloud provider to another and avoid cloud vendor lock-in," wrote ISI Group analyst Brian Marshall, in a note.
Cisco has also built Application Programming Interfaces (APIs) into its cloud, enabling customers to quickly deploy applications. The company predicts that its cloud effort will accelerate the deployment of the Internet of Everything, an ambitious plan to connect new applications and devices to the network.
Cantor Fitzgerald analyst Brian White believes that Cisco decided to dive into cloud following aggressive moves into the space from competitors such as IBM (IBM), HP (HPQ), VMware (VMW) and others. "Cisco will focus on enterprise-class cloud services for service providers, businesses, and resellers," he wrote, in a note released on Monday. "Already, Cisco offers Software-as-a-Service (SaaS), and today's announcement expands the company's reach across the other two major layers of the cloud to include Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS)."