All Eyes On Subscriptions
Cisco Systems announced its plans to become a software-first company in 2017 and during its most recent Investor Day this week, the tech giant made good on its promises.
Cisco finished its 2021 fiscal year (July 31) with 31 percent of revenues coming from software and subscriptions accounting for 79 percent of software revenues, exceeding Cisco‘s target of generating two-thirds of its revenue from subscriptions. Software and service revenue also exceeded Cisco’s target of 50 percent of total revenue, hitting 53 percent at the end of its most recent fiscal year. Those numbers prove that Cisco is now one of the biggest software providers in the world, the company‘s executive leadership team announced during Investor Day 2021.
But subscriptions are just as important as software – the two go hand-in-hand, according to Cisco. In fact, Cisco is now aiming for sales from subscriptions to make up half of its revenue by fiscal 2025, and partners are a huge part of the equation to reach that goal.
Cisco CEO Chuck Robbins and CFO Scott Herren took to the virtual stage this week, flanked by their peers on the executive leadership team, to talk about the importance of subscriptions and what Cisco is doing to further its strategy. Here‘s what the leaders had to say.