Cisco Introduces New Products to Keep Pace with the IoT Evolution

Cisco Focuses on Its Security Business, Posts Strong 2Q16 Results

(Continued from Prior Part)

Switching segment’s revenue fell 4% YoY

The revenue from Cisco’s (CSCO) Switching segment fell 4% in fiscal 2Q16 to $3.48 billion. The segment is essential for Cisco. It accounts for 29% of the firm’s total revenue.

Now, Cisco is looking to introduce a range of switch products that will enable businesses to keep up with the rapid change brought about by the IoT (Internet of Things) evolution. In order for enterprises to introduce new applications at a greater pace, Cisco is growing its Catalyst, ASR, and Aironet segments. It will provide network administrators with the required technology to keep up with the massive growth in mobile traffic.

IoT to increase the number of connected devices

In the next few years, the exponential growth in the IoT space will result in an increase in the number of connected devices. The bring your own device trend is also projected to increase traffic for enterprise and service provider networks. According to Cisco, the new switch products will help businesses overcome these challenges.

Cisco estimates mobile traffic in 2020 to hit 366.8 exabytes compared to 4.2 exabytes in 2015. This huge growth will be driven by an increase in the number of connected devices, mobile users, and speed of mobile networks. Cisco’s Prashanth Shenoy, senior director of product and solutions marketing for enterprise networking and mobility, stated that “Not only will more devices be connecting to the network, but also they will access a lot more business-critical applications requiring performance, reliability, and user experience than ever before.”

According to the International Data Corporation, Cisco leads the Ethernet Switch Market with a market share of 59%. It’s followed by Hewlett-Packard Enterprises (HPE), China’s (FXI) Huawei, Juniper (JNPR), and Arista Networks (ANET) with market shares of 9.4%, 4.6%, 3.7%, and 2.9%, respectively.

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Browse this series on Market Realist:

• Part 1 - How Cisco’s Security Segment Drove Its Growth in Fiscal 2Q16

• Part 3 - Mobile Data Traffic Drove Revenue in Cisco’s NGN Routing Segment

• Part 4 - Can Cisco’s Market Share Increase in the Collaboration Space?