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TECH SUPPLIER Sep 2019 - Market Perspective - Doc # EUR145522819

Cisco Makes Sweeping Sales Organization Changes as Part of Overall Strategic Transformation

By: Chris BarnardVice President, European Infrastructure and Communications, Leslie RosenbergResearch Vice President, Network Life-Cycle Services and Infrastructure Services, Lise Hagen, Roz ParkinsonResearch Manager, EMEA Enterprise Networks and Life-Cycle services


This IDC Market Perspective discusses wide-ranging changes that Cisco is implementing in its transformation from being a product-centric network equipment vendor to a subscription-based software and service networking player. Under CEO Chuck Robbins, Cisco is riding a wave of a successful transformation. The company delivered strong financial results in 2018, returning to growth and reporting its highest-ever revenue of $49.3 billion. Recurring offers accounted for 32% of total revenue in fiscal 2018, and subscription revenues accounted for 54% of Cisco's total software revenue.

"This strategy, with a key role for recurring revenue and the Customer Experience organization, means that the sales organization has had to change from being an effective team selling physical network equipment and services attach into a new, more agile, and multidimensional team, focused on enabling business, technology, and operational outcomes by leveraging virtual networking provided via subscriptions, as well as a much deeper, iterative services approach," said Chris Barnard, vice president, IDC European Infrastructure and Communications.



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