It Took 5 Years and $1 Billion for Cisco to Prepare This Key Future-Proof Strategy
Cisco Systems (NASDAQ: CSCO) announced last week some key initiatives that represent a huge shift in the legacy network vendor's strategy. Investors should benefit from this major transformation over the long term.
Cisco has been profiting from the development of the internet and the increase in network traffic over the last couple of decades. And with the growth of online services such as video streaming and gaming, Cisco forecasts that global network traffic will grow by 26% annually through 2022.
But Cisco's core network business has evolved over the last few years. Traditional companies just want a trouble-free, resilient, and high-performing network that supports their businesses, and Cisco's proprietary and monolithic solutions deliver that. However, emerging cloud giants such as Amazon with Amazon Web Services and Microsoft with Azure need more. They demand flexible, scalable, cost-efficient, and high-speed solutions to support the explosive growth of their huge networks.
Source Fool.com
