Cisco-CEO Chuck Robbins has said it wants to use Everything-as-a-Service for the core network hardware as well. He did this when announcing the IT company’s financial figures.
Cisco’s figures were disappointing, partly due to the pandemic. The company achieved its 2017 transformation targets. One of those goals was to offer two-thirds of software sales as subscriptions. That is now 78 percent, according to TheRegister. The CEO sees it as proof and therefore wants to offer more as-a-Service, including the company’s traditional network hardware.
Robbins: “I’d say that it’s clear that many of our customers do want to consume the technology as a service. We’re currently looking at the entire portfolio to see how deeply we can get into the portfolio relative to delivering as a service, and I think we’ll have a lot of that in the marketplace by the end of the calendar year.”
Cisco will have to, as competitors also rely heavily on as-a-Service models. Moreover, more change is coming for Cisco. It wants to invest more in the cloud, education, health and in general in automating businesses. Certainly due to the pandemic, the future of working has become a more important item on the Cisco agenda.
Meanwhile, a further $1 billion in costs needs to be saved. Partly as a result of the pandemic, turnover in the American branch of Cisco fell by 11 percent, which was 6 percent in Europe. In the last few weeks, partly due to the publication of the figures, large companies are increasingly showing the impact of the coronavirus and its measures on the results. Action needs to be taken and how Cisco is going to tackle it, we will probably discover that in the coming months.