Boston, MA 12/24/2013 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) is struggling with declining revenue and profits in recent years. The company is particularly troubled in its network equipment segment which is its main source of revenue. The challenge to this segment is posed by competitors such as Huawie, a Chinese company that is pushing Cisco Systems out of the most of the emerging markets with its cheap equipments.
Considering the fact that networking equipment business is becoming increasingly competitive and its fortunes are fast shrinking, the company is trying to improve its performance through its alternative businesses. In addition to networking equipment, the company also designs, manufactures and sells solutions and services related to communication and information technology.
On Dec. 17, Cisco Systems, Inc. (NASDAQ:CSCO) announced a new addition to its software solution business that is focused on cloud for Desktop as a Service (DaaS) providers.
The solution
The solution makes it easy, effective and costs less for desktop end-users to securely store, backup and access their data without worrying about updates and infrastructure maintenance. This solution plays into the hands of enterprise customers who are increasingly seeking cost-effective and secure way to store and access their data.
Cisco Systems, Inc. (NASDAQ:CSCO) is taking the approach of marketing this new DaaS solution to providers instead of going straight to the end users. This approach will allow it to market this solution quickly and with minimal effort.
The strategy is that by getting hold of providers, it will be adding more end-users indirectly and without huge marketing and advertisement costs.
Riding on reputation
Although Cisco Systems, Inc. (NASDAQ:CSCO) is facing troubles in the equipment market, the company still holds unmatchable reputation. Its products and solutions are readily accepted in the market because of their technological superiority. The company thus hopes to tap this good reputation to boost its performance in software and cloud solution business.
In any case, the company could win back its lost equipment market through its high-end and superior DaaS solution.
