Cisco Threads the Needle

Addresses customer concerns over SaaS sprawl and cloud repatriations

Cisco is one of many tech vendors that believe the future of IT delivery will belong to those who provide cutting-edge digital innovations in the form of monthly subscriptions. Today, 44% of the company’s revenue comes from recurring sources, including software subscriptions. That’s a marked difference from just a few years ago, when Cisco started every quarter with less than 10% of its revenue already booked.

Changes notwithstanding, Cisco recognizes that customers are growing wary of soaring subscription costs and management overhead. But rather than retreat from its plan to generate more than one-half of its revenue from recurring revenue, the networking company is making subtle adjustments to its go-to-market strategy to address software-as-a-service (SaaS) sprawl and cloud repatriations while fortifying its presence among customer security professionals.