Boston, MA 08/14/2014 (wallstreetpr) – Cisco Systems, Inc. (NASDAQ:CSCO) is going through a phase of upheaval; lately, after a period of minimal plummet in the share price, CSCO has seemed to gain vigor and push upwards!
Software Savviness
However, customers are playing a pivotal role in discerning that CSCO needs to push its deliveries into software platforms. The customers had approached the CEO of Cisco Systems, Inc. (NASDAQ:CSCO), John Chambers and conjectured that CSCO should take proactive steps to ensure that they begin selling software driven networking better than mere hardware selling!
The Effectivity Of Software Controlled Networks
Indeed, software can extract out with better efficiency and effectiveness, that what versatile machines would do! Martin Chavez, the CIO at Goldman Sachs Group Inc (NYSE:GS) commented that if the team spend a certain amount on gear last year, in all likelihood, the amount expended on the same product during the current year would not suffice, provided it has a different unique selling proposition!
Analysts at Bloomberg reviewed that Cisco Systems, Inc. (NASDAQ:CSCO)’s revenues are likely to be hit by 2%, amounting to $12.2 billion. In the last concluding period, CSCO garnered net profit of 53 cents, higher year over year by a mere 1 cent! As the projected earnings in the subsequent quarter are on the higher side, CSCO’s shares have pushed up by nearly 12%.
A Paradigm Shift
A holistic software-defined networking approach would emerge as a sumptuous shift occurring since the early periods in the 1990s, when Cisco Systems, Inc. (NASDAQ:CSCO) had risen up to the zenith of its success! Instead of investing millions on proprietory software, the trend today is investing for research so as to ensure that efficacious software is deployed to handle certain specified jobs, thus plummeting expenses incurred, improving productivity.
Company’s Views
David McCulloch, a Cisco Systems, Inc. (NASDAQ:CSCO) representative commented that by the end of FY 2014, the company would hardly be any CSCO hardware boxes, as focus on flexible, business focused software centric solutions are on the cards. The interest spanning SDN networks are on the high; however, it would potentially disrupt CSCO’s trend to focus buyers’ interests solely to a group of products!
