Cisco’s top executives plan to sharply increase subscriptions by 2025
All eyes on subscriptions
Cisco Systems announced plans to become a software-focused company in 2017 and on its final investor day this week, the tech giant delivered on its promises.
Cisco ended its fiscal year 2021 (July 31) with 31% of software and subscription revenue accounting for 79% of software revenue, exceeding Cisco’s goal of generating two-thirds of its revenue from subscriptions. Software and services revenue also exceeded Cisco’s target of 50% of total revenue, reaching 53% at the end of its most recent fiscal year. These figures prove that Cisco is now one of the largest software providers in the world, the company’s management team announced on Investor Day 2021.
But subscriptions are just as important as software – the two go hand in hand, according to Cisco. In fact, Cisco is now aiming for subscription sales to be half of its revenue by fiscal 2025, and partners are a huge part of the equation to achieve that goal.
Cisco CEO Chuck Robbins and CFO Scott Herren took to the virtual stage this week, along with their peers from the executive team, to talk about the importance of subscriptions and what Cisco is doing to move its business forward. strategy. Here’s what the leaders had to say.