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The Next Old-Guard Tech Titan – Cisco Systems Inc.

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• Posted on December 4, 2017December 4, 2017

The”move to the Cloud” is not the death of Cisco, but rather a great opportunity for the company. As Cisco doubles down on the cloud and moves its focus away from hardware sales to software revenues. Company expect to exceed its 2020 targets.

Partners : Cisco’s Software Strategy Driving Business

Cisco Systems are software-centric, based on consumer sales strategies to drive sustained long-term revenue growth, and the responsibility for implementing the strategy rests on the channel. Cisco has seen the impetus for new products, and the channels behind Cisco and the information it transmits to customers are the real frontier and center.

Hardware is more affordable, software fluency, cash flow becomes smaller, customer transfer to integrated cloudy environment, Cisco is turning to pay-as-you-go, products as a service purchase, and purchase by order or consumption, away from expensive proprietary independent hardware products The company is an IT power.

Naturally, it distracts the risk to customers and us, forcing Cisco to maintain a closer relationship with our customers, to allow customers to invest and see value, to invest in the value of various architectures, and then to buy hardware to achieve this goal.

Now I have the freedom to update the hardware without losing the investment when I refresh the hardware software. Growing commodity, software growth, see how many impact software has become profitable, and we grow a large part is driven by software delivery.

Winning where it matters

In addition to increased efficiency, Robbins also has focused on cloud software subscription sales to build a foundation of recurring revenue. Though implementing such a significant shift can be a painfully slow process, at Cisco, it is picking up steam. Better still, the percentage of income from recurring revenue sources continues to climb: Last quarter’s 32% was three percentage points higher than a year ago. That may not sound like much, but boosting Cisco’s base of stable revenue 10% in a year is nothing to sneeze at. And it gets better.