15 de December de 2017

What to expect from Cisco in 2018

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As the preeminent networking company shapes its plans for 2018, analysts and users say Cisco is at somewhat of an inflection point, transitioning from a hardware-based company to an integrated hardware and software-focused one.

In doing so, Cisco has plotted the next generation of its network management products in the form of intent-based networking. Meanwhile, as hardware sales growth slows due to workloads shifting to the public cloud, the company eyes the Internet of Things and edge computing as new frontiers for revenue growth.

“If you look at HPE, Dell, IBM and Cisco, all of those companies are trying to reinvent themselves for this cloud, IoT world,” says Forrester networking analyst Andre Kindness. “The traditional way of doing things is dead. They’re all big enough that they’re not going away anytime soon, but they also may have to find something else to power them in the future. For Cisco, maybe that’s IoT, maybe that’s software.”

From a business perspective, Cisco is still doing fine. The company earned revenue of $49 billion in 2015 and 2016 and $48 billion in the fiscal year that ended in July 2017; switching sales were down 5% in the fiscal year, while service revenue was up 3%. Below are some of the key technology areas the company is hoping will spur a new era of network innovation in 2018 and beyond.

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