Cisco (CSCO, Financial) is delivering innovative solutions designed on unique networks for allowing the futuristic technology for Internet of Everything and IP. It is continuously focused on the strategy that made it successful several times earlier holding top position in the market.
Data center focus
In data center, Cisco is leading the SDN competitive space with application-focused infrastructure. Cisco had more than 900 Nexus 9000 customers in the quarter, an increase from 580 during the previous quarter with robust momentum expected to continue.
Cisco is focused on two key objectives. First, Cisco aims to drive effectiveness, agility, speed and innovation in its business. Second, it is keen on transitioning its business model from just selling boxes and unconnected services to selling solutions and architectures that accelerate business outcomes.
Lately Cisco illustrated an enterprise license agreement for its software portfolio that it had signed with General Motors. Moreover, Barcelona in Chicago became a digitized city and converted into the smart cities by leveraging Cisco’s technical expertise.
Performance across segments
Cisco ended the quarter with 1% increase in product orders and product book-to-bill under one very similar to the first quarter. EMEA grew by 6%. There was extremely solid performance in the U.K., jump of 20% and performance increase of 6% in Germany. Southern Europe rose nearly 20%.
Cisco witnessed some stabilization in the growing countries within the EMEA with 2% growth of growing segment of Chris Dedicoat’s business.
Cisco’s business in America rose 2%. Excluding U.S. service provider, the U.S. grew 3%.
In America, Latin America was up 5%. China, Japan and Asia-Pacific declined 12% with China leading the race and declined to 33% whereas India rose 6%. Rest of the growing countries in Asia fell by 15%.
For this quarter, worldwide public sector rose 13%, worldwide commercial rose 5%, worldwide enterprise rose 2% and service provider fell by 10% globally.
Routing fell by 4% due to weaker CapEx spending by key service providers and fresh market challenges. However, there was healthy growth in many of its supreme routing platforms during the quarter. For instance, the ASR 9K witnessed significant order growth in double digits and its innovative products the CRS-X and NCS 6000 witnessed fresh customer wins. Hence, the company is gaining considerable market share in key routing areas in a tough environment.
Cisco’s switching segment grew 3% propelled by its solid data center switching portfolio.
Cisco experienced significant combined growth in orders for the Nexus 3K, 7K, 9K and ACI. It also signed a huge 600 new customers for the Nexus 3000 during the quarter that include many key Web 2.0 providers.
During the quarter, Cisco connected its security products much more closely with the Sourcefire products and offered a highly demanded Cisco ASA having firepower services, which connected Sourcefire with Cisco’s ASA firewall into single platform.
Customers view Cisco alone capable of delivering integrated security services and security architecture solutions for their business. And, Cisco is very well-positioned to capture this exciting growth opportunity.
In the previous quarter, wireless expanded just 1%. While, wireless rose 11% for this quarter, with solid growth momentum in its 802.11ac portfolio. Cisco Meraki grew 86% with another excellent quarter performance.
WebEx is continuously growing brilliantly and is believed to be one of the major FAS businesses in the industry. In addition, collaboration is estimated to become a key productivity accelerator for the organizations.
Conclusion
Hence, driven by growth across a range of businesses, Cisco looks set to improve in the long run.
