An insight into the current business strategies of Cisco

1. CISCO STRATEGIC
PROFILE
 Company Overview
 Key Strategic Initiatives
 Information on Cisco’s Digital and Customer
Experience Strategy
 Financial Analysis based on key operational
parameters
~ Abhijit Das

2. Cisco Company Overview
• Leading provider of business transformation solutions
integrating network, cloud, data center, security , analytics,
collaboration, and IoT
• Founded in 1984 and headquartered in San Jose, California,
United States, currently employing around 73,700 employees
• Public company (NASDAQ: CSCO) with business operations
spread across the regions of Americas; Europe, Middle East,
and Africa (EMEA); and Asia Pacific, Japan, and China (APJC)
• Caters to both large enterprises, and Small and Medium
Enterprises (SMEs) through the business segments of Next-
Generation Network (NGN) Routing, Switching, Wireless
Collaboration; Data Center, Security, Service Provider Video,
Services, and Other Products (emerging technology products)

3. Cisco Key Strategic Initiatives
• Engages in both organic (R&D, expansion),
and inorganic (acquisition, partnership,
collaboration) growth strategies
• Focussed on empowering customers with
digital transformation solutions and services
connecting dispersed, distributed data
• Transforming business to recurring revenue
model by increasing the percentage of cloud
networking platforms, thus shifting to a
subscription and software based model
• Migrating from selling individual products
and services to selling products and
services integrated with architectures and
solutions
• As security has become the foremost IT
priority for customers, therefore providing
customers with a unified threat-centric
security architecture combining network-
based, cloud-based and endpoint-based
solutions
Strategy
Customer
Digital
Transformation
Architecture
and Solutions
Security
Recurring
revenue model

4. Digital and Customer Experience Strategy
• Assisting enterprises on their digital
transformation journeys by providing an
exhaustive portfolio of outcome-oriented
digital solutions, a developer-rich
environment and a partner ecosystem that
integrate analytics, security, and
automation across enterprises’ business
value-chains
• Aiding enterprises to embrace digital
transformation by:
• Transforming processes and business models
• Enabling workforce innovation and efficiency
• Personalizing customer experience
• Empowering enterprises to provide multi-
channel customer experience, thus
enabling them to strengthen customer
loyalty. Also, enterprises can gain deep
dive insights about customer behaviour
though digital channels
Analytics
Automation
Security

5. Financial Analysis Snapshot 1
47.14
49.16 49.25
13.4%
12.6% 12.8%
0.0%
3.0%
6.0%
9.0%
12.0%
15.0%
0.00
10.00
20.00
30.00
40.00
50.00
2014 2015 2016
Revenue (USD Billion) Research and Development
• Continuous
investment in
R&D and in
order to innovate
in a highly
competitive
market
• Strong revenue
growth in 2016
with 12.8% R&D
expense

6. Financial Analysis Snapshot 2
• Increasing revenue from the APJC region, particularly the emerging
economies of China and India, in 2016, as compared to 2015
• Brazil, Russia and Mexico are some of the other markets being
focussed upon by Cisco
• Solid revenue growth in the business segments of Security,
Switching, Collaboration, and Services in 2016, as compared to 2015
60.0%
25.0%
15.0%
Geographic Revenue Breakup
Americas
EMEA
APJC
30.0%
24.0%
15.0%
9.0%
7.0%
5.0%
5.0%
4.0%
1.0%
Business Segment Revenue Breakup
Switching
Services
Next Generation Network Routing
Collaboration
Data Center
Wireless
Service Provider Video
Security
Other Products