Sector: Enabling Technologies/Communication Equipment Countries of operation: 97 countries including US, Brazil, China, South Africa and UK Key product categories: Network architecture, Internet of Things, wireless firewalls, data center equipment and cloud services Annual Metrics [caption id="attachment_113571" align="aligncenter" width="700"] Fiscal year ends July 31
*Trailing 12 months ended April 25, 2020.[/caption]   Summary Headquartered in San Jose, California, Cisco Systems is an American telecommunications equipment and infrastructure provider that offers technologies that power the Internet. It was founded in 1984 and went public in 1990. The company develops and sells products and services for networking, security, collaboration, applications and the cloud. As of the end of fiscal year 2019, Cisco has field sales offices in 97 countries and sell both directly and through a variety of channels with support from its own salesforce. Company Analysis Coresight Research insight: Cisco is transitioning from being a provider of Internet hardware to a provider of recurring software, with subscriptions accounting for 74% of the most recent quarter’s revenue. In retail, Cisco offers infrastructure for retailers to improve the customer journey, equip associates with information, realize physical and cybersecurity and optimize their operations. Looking ahead, Cisco is well-positioned to benefit from the upcoming commercial 5G wireless buildout and the growth of the Internet of Things.

Tailwinds	Headwinds
Opportunities for 5G wireless market and Internet of Things. Corporations’ digital transformations. The scale and resources of being a major telecommunications equipment supplier.	Longer decision-making cycles due to macro uncertainty. Lower retail and general capital expenditures. A largely hardware-driven business when hardware is becoming commoditized.

Strategy Cisco aims to deliver highly secure, software-defined, automated and intelligent platforms for its customers and has outlined the following strategic priorities: 1. Accelerating the pace of innovation

a. Enabling network automation.

b. Building the necessary infrastructure to navigate complex IT environments.

c. Delivering solutions that simplify, secure and transform how customers work in a multi-cloud world.

2. Increasing the value of the network

a. Delivering effective cybersecurity architecture combining networks, and cloud and endpoint-based solutions.

b. Enabling customers to aggregate, automate and draw actionable insights from highly distributed data.

3. Transforming its business model

a. Increasing the number of software offerings and the proportion of subscription software offerings.

b. Increasing cross-category offerings.

c. Adding more common software features across core networking platforms.

Company Developments

Date	Development
May 13, 2020	Cisco reports a third quarter revenue decline of 8% year-over-year, with 95% of its employees working from home.
April 20, 2020	Cisco participates in $250 million funding round in hyperconverged secondary storage startup Cohesity.
April 6, 2020	Cisco acquires wireless backhaul solutions company Fluidmesh Networks.
March 10, 2020	Cisco announces partnership with Microsoft to integrate Azure cloud with Cisco’s IoT platform to create the Cisco Edge to Microsoft Azure IoT Hub.
January 28, 2020	Cisco announces new AI-powered voice, security and data-privacy upgrades for WebEx conferencing software.

  Management Team

• Charles Robbins—Chairman &CEO
• Kelly Kramer—Executive VP & CFO
• Tiang Yew Tan—Executive VP & COO

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Source: Company reports/S&P Capital IQ