Wholesale is cheaper: taking advantage of falling ratings, Cisco buys companies to enter the markets of the "new generation"
Six months ago, Chuck Robbins became Cisco Systems CEO. With his light hand, Cisco decided to buy 8 companies. Shortly before the appointment of Robbins, 3 more companies were bought. Moreover, Robbins is not going to stop this process.
This month, Cisco acquired Jasper Technologies for $ 1.4 billion. The latter is the creator of the Software as a Service (SaaS) service cloud platform for developing Internet of Things solutions.
You can connect almost any modern smart device, including automobiles and medical devices, to the Japer SaaS platform, as well as get a comprehensive analysis of statistics related to all solutions connected to the platform. Currently, Jasper Technologies' services are used by more than 3,500 companies worldwide.
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Due to the economic situation in the world and investor sentiment, technology companies are falling. Cisco uses the current situation.
Robbins believes that the priority areas for Cisco development should be to strengthen positions on companies in the niches it occupies and to enter the markets of the “new generation”. In particular, the Internet of Things is such a market. And in order to enter a new market, the easiest way is to buy one or several players. In this case, Cisco needs not so much hardware manufacturers, but software and SaaS services developers, writes Business Insider.
However, not all markets do things go well for Cisco. According to a study by the Synergy Research Group , the struggle for leadership in the video infrastructure market will intensify with the closure of a series of mergers between manufacturers.
In November 2015, the French company Technicolor completed the process of acquiring CPE from Cisco (production of equipment for home video, including set-top boxes and broadband access devices) from Cisco.
In early 2016, Arris (manufactures telecommunications equipment) announced the closure of a deal to take over British competitor Pace for $ 2.1 billion. Arris and Pace accounted for only 5% less than the market for equipment for broadcasting and receiving video and television signals compared to the Cisco leader.
However, after recent deals, Cisco dropped to second place, skipping ahead of Arris with a 17 percent market share. Cisco holds the lead due to its dominance in the network solutions segment.
Meanwhile, Technicolor’s share in the hardware video infrastructure market jumped to almost 8%.
In the software sector, Cisco retains leadership, controlling more than 20% of sales here. The closest competitors Nagra and Arris are far behind, noted in Synergy Research.
Today, Cisco Systems has announced an increase in quarterly profits due to increased demand for routers and security tools, reports Reuters.
The company's net income increased for the second fiscal quarter ended January 23 to $ 3.1 billion, or 62 cents per share, from $ 2.40 billion, or 46 cents per share, a year earlier. Excluding additional articles, Cisco earned 57 cents per share, surpassing the consensus forecast of analysts polled by Reuters, who expected this figure of 54 cents per share.
Total revenue rose 2% to $ 11.8 billion. Cisco's revenue from the router division increased 5% to $ 1.85 billion. Revenue from the switch division — the company's largest business — rose 4% to $ 3.48 billion.
This month, Cisco acquired Jasper Technologies for $ 1.4 billion. The latter is the creator of the Software as a Service (SaaS) service cloud platform for developing Internet of Things solutions.
You can connect almost any modern smart device, including automobiles and medical devices, to the Japer SaaS platform, as well as get a comprehensive analysis of statistics related to all solutions connected to the platform. Currently, Jasper Technologies' services are used by more than 3,500 companies worldwide.
')
Due to the economic situation in the world and investor sentiment, technology companies are falling. Cisco uses the current situation.
Robbins believes that the priority areas for Cisco development should be to strengthen positions on companies in the niches it occupies and to enter the markets of the “new generation”. In particular, the Internet of Things is such a market. And in order to enter a new market, the easiest way is to buy one or several players. In this case, Cisco needs not so much hardware manufacturers, but software and SaaS services developers, writes Business Insider.
However, not all markets do things go well for Cisco. According to a study by the Synergy Research Group , the struggle for leadership in the video infrastructure market will intensify with the closure of a series of mergers between manufacturers.
In November 2015, the French company Technicolor completed the process of acquiring CPE from Cisco (production of equipment for home video, including set-top boxes and broadband access devices) from Cisco.
In early 2016, Arris (manufactures telecommunications equipment) announced the closure of a deal to take over British competitor Pace for $ 2.1 billion. Arris and Pace accounted for only 5% less than the market for equipment for broadcasting and receiving video and television signals compared to the Cisco leader.
However, after recent deals, Cisco dropped to second place, skipping ahead of Arris with a 17 percent market share. Cisco holds the lead due to its dominance in the network solutions segment.
Meanwhile, Technicolor’s share in the hardware video infrastructure market jumped to almost 8%.
In the software sector, Cisco retains leadership, controlling more than 20% of sales here. The closest competitors Nagra and Arris are far behind, noted in Synergy Research.
Today, Cisco Systems has announced an increase in quarterly profits due to increased demand for routers and security tools, reports Reuters.
The company's net income increased for the second fiscal quarter ended January 23 to $ 3.1 billion, or 62 cents per share, from $ 2.40 billion, or 46 cents per share, a year earlier. Excluding additional articles, Cisco earned 57 cents per share, surpassing the consensus forecast of analysts polled by Reuters, who expected this figure of 54 cents per share.
Total revenue rose 2% to $ 11.8 billion. Cisco's revenue from the router division increased 5% to $ 1.85 billion. Revenue from the switch division — the company's largest business — rose 4% to $ 3.48 billion.
Source: https://habr.com/ru/post/298610/
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