{"id":36950,"date":"2018-11-15T11:57:57","date_gmt":"2018-11-15T11:57:57","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=ad15a8887f1125ac9c68be1c2ab08848"},"modified":"2018-11-15T11:57:57","modified_gmt":"2018-11-15T11:57:57","slug":"cisco-defies-market-shift-to-cloud-with-rising-hardware-sales","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/cisco-defies-market-shift-to-cloud-with-rising-hardware-sales\/","title":{"rendered":"Cisco defies market shift to cloud with rising hardware sales"},"content":{"rendered":"


\n Connor Jones<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
15 Nov, 2018<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

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Cisco has said increased demand for its router hardware as well as a surging software business has led to an unexpected jump in year over year revenue and profits, according to a earnings report released on Wednesday.<\/p>\n

Demand for its hardware had been declining as customers frequently turned towards cloud services provided by the likes of Amazon and Microsoft. However, revenue for its hardware unit rose 9% to $7.64 billion, beating analyst expectations of $7.39 billion, according to Reuters<\/em><\/a>.<\/p>\n

The company recently immersed itself in the software and cyber security market following a decreased demand for its hardware, resulting in the $2.35 billion acquisition of\u00a0cyber security\u00a0provider Duo Security back in August. Wednesday’s report showed revenue for its application software business had risen 18% to $1.42 billion for the year, while security sales, which include its firewall protection and breach detection services, were up 11% to $651 million.<\/p>\n

<\/p>\n

\n“We had a strong start to fiscal 2019 and we believe our opportunity has never been greater,” said Chuck Robbins, chairman and CEO of Cisco.<\/p>\n

“Our customers are looking to Cisco as a trusted partner to help them operate in a multi-cloud world and to transform their businesses. Our strategy is working and we are well positioned with our growing and differentiated portfolio across multiple domains to bring our customers a more secure, automated and simple IT infrastructure.”<\/p>\n

The company’s shares which forecast unexpected growth in revenue, were also up 4% in extended trading, contributing to a near 16% gain for the year.<\/p>\n

Cisco revealed that subscriptions were running steady, providing consistent revenue flow with 57% of total software revenue in the first quarter, following the previous quarter’s 56%.<\/p>\n

“We executed well, with broad-based growth across all of our geographies, product categories and customer segments, and delivered 8% revenue growth and 23% non-GAAP EPS growth,” said Kelly Kramer, CFO of Cisco. “We are seeing the returns on our investments in innovation as we continue to transform our business model.”<\/p>\n

This welcome news follows its big announcement at its recent 2018 Partner Summit in Las Vegas. Cisco will be offering a range of its security products across its SD-WAN management portal by the end of the year. This includes new firewall services, an intrusion protection system (IPS), URL filtering and its cloud-based security from Cisco Umbrella.<\/p>\n

The company said it was responding to the biggest market shift in networking for the past 20 years. <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Connor Jones<\/p>\n

15 Nov, 2018 <\/p>\n

Cisco has said increased demand for its router hardware as well as a surging software business has led to an unexpected jump in year over year revenue and profits, according to a earnings repor…<\/p>\n","protected":false},"author":507,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-36950","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/36950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/507"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=36950"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/36950\/revisions"}],"predecessor-version":[{"id":36951,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/36950\/revisions\/36951"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=36950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=36950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=36950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}