Cisco Revenue Forecast Disappoints, Hurt by Networking Shift - Bloomberg - 0 views
-
Chief Executive Officer Chuck Robbins is trying to recast Cisco as a provider of networking services, seeking to reduce its dependence on hardware by offering more software and cloud-based products that provide predictable revenue.
-
Companies are ordering less equipment for installation on their own premises, according to Raymond James & Associates analyst Simo
-
Robbins is working to restore the kind of growth that made Cisco one of the world’s largest companies
-
"Cisco Systems Inc., is the biggest maker of equipment that runs the internet". This article highlights the disappointing revenue that Cisco Systems is facing currently. However, the CEO is pushing to have Cisco's networking services to be more cloud based than hardware based. Because their company is known for its hardware, they are taking a hit revenue wise in their transition to a cloud based system. Companies are buying less hardware and are relying on other alternatives to keep their business running efficiently. I believe that Cisco is identifying with the current trends that are apparent in the IT world. As stated in our discussions, a cloud-based software eliminates the use of bulky hardware, eliminates costs, and allows companies to scale up or down depending on their size. So Cisco can use this information to help develop their cloud system. The businesses see value in switching systems and Cisco is in the business of providing them with what they need. Cisco is being recasted as a networking system so it is taking time for companies to switch their view on Cisco. I believe that Cisco should not deter from this transition and be able to reinvent themselves as a cloud based network. Though their revenue is taking a hit, they should continue for now until they are able to establish themselves.