I wonder how long they'll be able to continue fooling the analysts about reoccurring revenues? KK was asked the question about where they were coming from and after fumbling around she said about 2/3 were from Meraki and Collaboration and the rest from core products. The truth is the growth is all from Meraki and anything in the core is substituting something else. Problem is Meraki is not an enterprise offering, its for SMB and their growth will start to plateau soon. I expect this is being predicted hence why the ELT are willing to pay twice the market value for any company that adds growth the the reoccurring revenue numbers, such as AppDynamics. I really worry about the future of Cisco now, as it's focus is purely on short term shareholder value and will do anything to keep the markets supportive, but eventually the truth will be revealed and that will be a hard day for shareholders.
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The I in Cisco does not stand for innovation. Just more of the same old games. Unqualified people rising the ranks patting themselves on their backs and the ELT walking away with $1m+ bonuses while the rank/file get LR'd. Obviously, the lack of revenue is the fault of the engineers and not the ELT that makes the decisions. This isn't tactical issues these are strategic.
Financial Engineering and earnings shinnanigans.......Bloomberg gets it: https://www.bloomberg.com/news/videos/2017-02-16/breaking-down-cisco-s-2nd-qtr-earnings-report