Cisco recorded a strong increase in software revenues in the past quarter, but the back order for hardware products is gradually being reduced.

The network specialist Cisco presented its quarterly financial results yesterday evening, with which Cisco can already start the 2024 financial year. Champagne is an integral part of a New Year’s Eve party, and Cisco had many reasons for it. Cisco reported quarterly revenue growth of 16 percent to $15.2 billion and for full fiscal year 2023 the increase was 11 percent to $57 billion.

In particular, revenue from software products and related subscription services increased sharply. Software accounted for $17 billion of total annual revenue, up 12 percent from 2022. Subscription services brought in $24.6 billion. This means that the share of hardware sales is getting smaller every year.

Clean up residue

But there was also good news for hardware sales. The corona pandemic has caused many problems at Cisco. Production and delivery of orders fell significantly, which Cisco is catching up to this day. Not only does unfulfilled orders result in reduced sales of the hardware, but customers also don’t buy the supporting software.

Cisco expects to be fully up to date with shipments this fiscal year, if possible this calendar year. Only the conference technology sector did less well, achieving twelve percent less sales here. Cisco seems to be having a hard time competing in this market with Zoom and Microsoft, to name just a few of the big players.

The company also indicates that it does not want to miss out on the AI ​​train. Not only by integrating AI into products and services ourselves, but also by marketing the right networking products. In The Register, Cisco admits it missed the first wave, but doesn’t want to pass up the opportunity to surf the hype while it lasts.