Channel Beat: Political Tensions Impact Cisco Service Provider Business

Cisco CEO Chuck Robbins says tension in the U.S. and global political landscape has slowed down service provider spending, which could create a significant revenue decline for the networking giant in its second fiscal quarter.

Cisco projected Q2 revenue to decline 2 percent to 4 percent year over year, and shares dipped 5 percent following the release of those numbers.

Service provider business accounts for roughly 25 percent of Cisco's overall business.

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Robbins said the business was down 12 percent in new orders and did not forecast any immediate improvement.

Cisco is continuing to invest in its Internet of Things strategy.

Cisco plans to create an intelligent network designed specifically for the IoT market, and tie that network into every device possible.

Cisco is creating a Certified Device Program to certify connected devices to the network, and has built internal teams to help channel partners sell IoT services and solutions.

Cisco partners say there is a need for this type of intelligence in the IoT network.

Despite a revenue decline, NetApp CEO George Kurian expressed optimism around the company's all-flash storage business.

NetApp reported revenue was down less than 1 percent for its second fiscal quarter year over year.

Kurian told investors that strategic solutions, including all-flash storage arrays, now account for 62 percent of the company's total product revenue.

Investors apparently liked that news, as NetApp's share price rose more than 10 percent in after-hours trading.