It looks like the markets are starting to realise Cisco can't turn this decline in revenues around as easily as first believed. We all knew this already though.
However the elephant in the room still is this BS about transitioning to software! Are we really trying to fool the market that customers are actually "buying" reoccurring software subscriptions from us? I've not seen any evidence of this. Is this the only reason the stock hasn't dropped 20% already?
Most of the SW growth is coming from Meraki and WebEx. Very little has anything to do with what Cisco is claiming to the market is proof the strategy is working. It won't take long for the truth to be realised.
Selling software and making it work are entirely different things.
CSCO is anything but a software company.
This battleship will turn slowly, likely run aground, and turn into a trash barge.
Selling an ELA is not software sales. Clearly you are nothing more then an glorified box shifter. Try joining a real software vendor, then tell me if you think Cisco is "selling" software. It's all smoke and mirrors.
It's only deferred if they stay with Cisco. Truth is making our product software only strengthens the competitions position. Regardless Cisco's revenues and margins will be eroded, but it has to do it to survive.
3 of what? Collab/Security? Cisco One? - for customers its a built in discount structure basically that lowers your overall spend with Cisco....Deferred Rev was up in the earnings by 13% so sounds like existing install base is taking advantage of the EA fire sale to lower Cisco spend.
Are we really trying to fool the market that customers are actually "buying" reoccurring software subscriptions from us? I've not seen any evidence of this.
You've never been a customer. You need a support contract to get access to the endless stream of incomplete bug fixes. Even for the 90 day hardware warranty Cisco proudly said hardware coming in for warranty service without a separate support contract sits on the shelf for a week before anyone starts working on it. If your contracts lapse you have to go through an extremely expensive "recertification" process in addition to paying for a new service contract to get updates. No one is deploying mission critical systems without these contracts and now it's a matter of pricing them just under the point where customers will forklift upgrade to get out from under Cisco.
Interesting comment, I have sold 3 EA this year. I would say if you sell the value, they will buy it.