6 Keys To Cisco's New Performance Metrics For The 'Network Intuitive' Era


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Better Alignment

Cisco Systems is consolidating the product categories it uses when reporting financial results, halving the number from 10 to five in an attempt to "better align our product categories with our evolving business model," the company said.

The new arrangement is part and parcel of Cisco's evolving strategy move away from the expensive, proprietary hardware that made it an IT industry giant and toward the cloud-focused software and consumption-based economics currently driving the market and its "Network Intuitive" strategy. It also helps simplify what one observer called a "mishmash" of categories that made it difficult to follow progress and gauge success or failure.

Most customers now operate in complex, multi-cloud environments, CEO Chuck Robbins (pictured) said Wednesday during a call with Wall Street investors to discuss the company's first-quarter earnings, and Cisco has reimagined its portfolio to emphasize new consumption models and focus on software and subscription revenue as the keys to future growth.

The new categories were put into practice for the first time Wednesday when Cisco reported first-quarter earnings. Under the new arrangement, Cisco left its security and services sections untouched but collapsed eight other former sections into three new, broader categories. As part of the change, Cisco laid out three years of reclassified revenue figures.

Click through to see several key facts about the new categories.



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