Cisco Appointment a Sign of Vendor’s Digital Transformation Commitment

Robbins as Cisco Chairman ‘Good News’ for Partners

Appointment a sign of vendor’s digital transformation commitment, The 2112 Group’s Walsh says

For channel partners working with the channel giant, the news is a sign of its dedication  to the era of digital transformation, according to Larry Walsh, CEO and chief analyst at The 2112 Group.

“The elevation of Chuck Robbins to the chairman post is a strong signal that Cisco is committed to its digital transformation strategy,” he told Channelnomics. “All hardware vendors are trying to redefine their models and value in a market that is increasingly less dependent on hardware.”

Walsh said that as a hardware vendor, Cisco is moving in new directions and expects “more sales to shift to services over the next few years”.

Indeed in its Q4 results, Cisco saw service revenue increase one percent and product revenue drop five percent.

According to Walsh, Robbins has potential to further push Cisco’s digital transformation efforts in his new role.

“As chairman, he will have a greater voice in guiding Cisco’s transformation agenda and influencing internal and external stakeholders,” Walsh said. “This is good news for Cisco partners too, as it means their investments in digital transformation based on Cisco products and services are secure.”

Written by Scharon Harding

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