The network giant claims to have has taken a step forward in its attempt to adapt to the cloud era. According to a report: Cisco is far from a failure. It produces billions of dollars in annual profits and is generally considered stable and well run. But investors feared its regular operations could lead to a slow-motion descent into obsolescence in an industry that can be brutal for anyone falling behind by half a step. Perhaps the best example of a tech giant stumbling and then regaining its dominance is Microsoft, and analysts routinely pitch it as a role model for Cisco. Microsoft’s decline, which began around the same time as Cisco’s, was largely the result of disappointing product growth. That started to change in 2014, when new CEO Satya Nadella started selling tons of copies of popular software like Excel and Word as subscription services rather than one-time products and created a tremendous cloud computing division. Microsoft is now the only US company other than Apple with a market value of over $ 2,000 billion.
Chuck Robbins was Cisco CEO a year younger than Nadella. In recent months, he has started to insist that his business has finally hit its inflection point. Cisco recognized years ago that it had failed to capitalize on the opportunity to build the initial infrastructure for cloud computing, says Robbins, and responded with a major, albeit slow, overhaul of its strategy. . “We were going to develop the technology for the next transition,” he says. “We did. Now we see the benefit.” Part of Cisco’s initial problem was a lack of flexibility. When Amazon, Google, and Microsoft started building cloud-based data centers, they wanted components, software, and machines to suit their needs. Cisco insisted on selling the same expensive, non-customizable equipment that has always been the core of its business. The booming cloud companies were only too happy to do their business elsewhere. Robbins can point out significant changes during his six-year tenure. Cisco has made a series of acquisitions that have made it one of the top 10 software companies in the world by revenue. Software and services have overtaken hardware and now account for more than half of Cisco’s revenue. Its expected future revenue for unpaid charges for these products is $ 30 billion.
Cisco wants to come back like Microsoft did
Source link Cisco wants to come back like Microsoft did