By Kin Talk on Thursday, January 23, 2014 with 12 comments
Initiatives focus on the growth opportunities in cloud, mobile and social.
Cisco Systems, Inc. (NASDAQ:CSCO) is moving more into services. Already, its service unit is in a changeover, adding its first consulting projects. The No.1 maker of networking gear is struggling hard to increase revenues from avenues outside its core competence of routers and switches. CSCO is faced with a real problem as sales have been sluggish in this core line of business.
Cisco is getting some consulting initiatives underway in its services business with emphasis on growth areas like security and cloud computing. Services make up over 20% of CSCO’s revenue, but the division’s growth has been sluggish in 2013.
In consulting, Cisco is closely targeting fast-growing areas such as data analytics, software-defined networking (SDN) and the “Internet of Things” trend that is common among several machines connected to the Internet.
Cisco’s service business is going to employ a different approach to systems integration. They are introducing smart services and establishing analytics to assist in running optimized and configured networks.
A decade ago the networking company began to get a lot more customer requests to help in designing their networks. So Cisco constructed a complex service group that’s support by the data center architectures of the company and the networking equipment, etc.
How is Cisco expanding the service business?
Cisco is moving into areas like application centric infrastructure and this is a novel approach to tackle SDN and essentially help clients solve their issues in cloud, mobility, social media and security.
The target areas for the new consulting services are many with security being an important one. Companies have a pressing need to be more secure utilizing technology, solutions, systems, and methods. Security has increasingly become a source of worry for customers.
In Cisco’s cloud services, the networks are managed by the company. As far as the industry solutions unit is concerned, Cisco is establishing industry models that help the retail clients.