Cisco’s Top Execs On Plans To Aggressively Grow Subscriptions By 2025
Cisco has been on a mission to become a software company in recent years and the tech giant is now aiming for sales from subscriptions to make up half of its revenue by fiscal 2025. Here‘s what Cisco’s CEO, CFO, and executive leadership team said about its plans to further subscriptions.
Scott Herren, Cisco CFO
On disciplined financial management through subscriptions
“I think what‘s impressive is … the amount of [Cisco’s] software revenue that is subscription-based. It more than tripled [since FY 2015]. It went from about 40 percent of our software revenues that were subscription based to 79 percent in the [fiscal] year we just closed. A significant amount of progress, not just in driving more software revenue, but driving more of it from subscription.”
“[I plan to] continue that disciplined financial management and operating efficiency that Cisco has become known for. We‘ve built that skill set. It’s not going to change. I want to maximize the value we create through the course of this transformation by building the amount of subscription and recurring revenue we have, that you can then renew next year, and [stack] new sales on top of that, which not only creates greater revenue growth and greater cash flow growth, it [also] gives us greater visibility and there’s less volatility in our results.”