Petroc Taylor
Research expert covering global developments in the use of data
Cisco - statistics & facts
From networking to cybersecurity, California-based Cisco seeks to power essential digital infrastructure across the globe. Named after San Francisco, where the firm was founded in 1984, Cisco played a crucial role in the development and commercialization of networking technology. While networking remains Cisco’s core business, the company has broadened its offering to meet the demands of disruptive technologies, not least artificial intelligence (AI). This has enabled to the firm to remain resilient in an uncertain market, with revenue in the company’s 2024 fiscal year reaching 53.8 billion U.S. dollars.
Cisco’s services business remains critical
Cisco organizes its products into four core categories. Networking, which has accounted for around half of the firm’s revenue since 2019, encompasses Cisco’s switching, routing, wireless, and server hardware and software offerings, and is a market in which the firm faces stiff competition from HPE, Juniper Networks, and Huawei. The remaining three product segments – security, collaboration, and observability – account for just a fifth of total revenue, with the remainder generated by Cisco’s considerable services business. This business, which involves supporting customers in the management and upgrade of Cisco products, provides a vital and steady revenue stream while aiding the retention of key customers.Cisco acquires Splunk
Cisco made headlines in early 2024 with its 28 billion U.S. dollar acquisition of the cybersecurity analytics firm Splunk. Cisco has stated that Splunk, which enables organizations to analyze vast quantities of machine-generated data via a user-friendly dashboard, will be deeply integrated within Cisco’s business. The deal represents a response to the growing importance of AI, with the software helping customers head off increasingly complex cybersecurity threats, and with Cisco seeking to enhance the usability of the Splunk platform via generative AI integration.Cisco seeks further acquisitions
While Cisco’s Splunk acquisition marks a decisive move towards AI integration, the firm remains exposed to a range of challenges, with intense competition across the company’s operating segments, and with organizations worldwide seeking to limit IT expenditure amid economic uncertainty. In light of this, Cisco has signaled an intent to seek further strategic alliances and acquisitions as it looks to further enhance its products and services.
