Cisco Services Strategy A Big Differentiator
One of Cisco's most important opportunities is in services, which executives have been saying for a few quarters now will become a bigger piece of Cisco's overall revenue. Chambers and CFO Frank Calderoni (pictured) told analysts that services will grow from a roughly 20-21 percent share to 25 percent and even 30 percent over the next few years. Cisco has about 65 percent gross margins in services.
Chambers, Calderoni and Cisco Presidents Rob Lloyd and Gary Moore later told reporters that Cisco will continue to protect partner margins on services deals thanks to programs like its eight-month-old Cisco Services Partner Program (CSPP), and that "you'll never see a hard deck strategy" at Cisco or see Cisco acquire systems integrators to compete with its partners for services.