Cisco’s Revenue Breakdown By Segment (2016-2023)

This statistic shows Cisco’s Revenue Breakdown by Segment, split across Applications, Infrastructure Platforms, Security, Services, and Other Products.

Cisco’s Revenue Breakdown By Segment

(figures in billions, except percentages)

The majority of Cisco’s revenue comes from Infrastructure Platforms and Services Segment.

Cisco’s revenue declined 9.3% year-on-year from $13.15 billion in Q1 2020 to $11.93 billion in Q1 2021. The reason for this decline was the COVID-19 pandemic that affected mainly the Infrastructure Platforms and the Applications Segment.

Applications

Cisco’s Applications product segment generated revenue of $1.38 billion in Q1 2021 and witnessed a decline of 8% on a year-on-year basis. Applications Segment contributed 11.6% to the total revenue. WebEx, a video platform, benefitted from the pandemic and witnessed double-digit growth. AppDynamics and IoT software also witnessed strong performance. There was a decline was in Unified Communications and Cisco Telepresence.

For the record, Cisco’s applications product segment includes the following products:

• Unified communications
• AppDynamics
• WebX
• IoT software
• Cisco Telepresence

Infrastructure Platforms

Cisco’s Infrastructure Platform segment was the most affected segment by the Covid-19 pandemic as revenue fell from $7.53 billion in Q1 2020 to $6.34 billion in Q1 2021, a decline of 15.8%. Infrastructure Platforms contributed 53.1% to the total revenue. Infrastructure platforms segment offers related to switching, routing, wireless, and data center. These products help the user in storing and transferring data. The company’s revenue witnessed growth in the wireless segment through Wifi6 products and Meraki Offerings. However, there was a decline in the switching, routing, and data center product category. The company said that the Infrastructure Platforms suffered the most during the pandemic as there was no demand for the products of this segment.

Security

Cisco’s security portfolio is designed to prevent and detect cyber attacks. The security segment includes providing the user with email security, network security, cloud security, and advanced threat management. The security segment witnessed a growth of 4.9% from $0.82 billion in Q1 2020 to $0.86 billion in Q1 2021. The security segment contributed 7.2% to the total revenue. 

Services

Cisco provides various service and support facilities to its clients which include technical support services. These services ensure customer satisfaction by solving the difficulties faced by the customer. The support and maintenance services help the customers ensure the product operates effectively and efficiently. 

In Q1 of 2021, the Services’ segment generated revenue of $3.34 billion against $3.28 billion in the previous year of the same quarter, an increase of 1.8% on a year-on-year basis. After Infrastructure Platforms, the Services segment contributed the highest to the total revenue with 28%.

Other Products

Other Products include Cisco’s Service Provider Video Software Solutions and cloud and system management products, hardware licenses, and software licenses. Revenue from Other Products witnessed a massive decline of 75% on a year-on-year basis. Other Products contributed the least to the total revenue with 0.4%.

Company Overview

Cisco Inc. was founded in the year 1984 by Sandy Learner and Leonard Bosack. Its main headquarters is situated in the middle of San Jose, California, United States. Cisco is a worldwide leader in Technology and Networking. The company’s business is organized across three geographic locations- US, Europe, Middle East and Africa (EMEA), Asia Pacific, Japan, and China (APJC). Cisco has company field sales offices in 95 countries and the company sells its products and services both directly and through different channels with the help of employees.

Cisco is continuously introducing new products and technologies to fulfill the demand of its clients. The company is investing in its Research and Development department and expanding its research in certain product areas like machine learning, and cloud computing. In 2020, Cisco invested $6.35 billion in the Research and Development department.

Cisco faces competition from Amazon Web Services, Dell Technologies, Check Point, and Arista Networks.

Cisco’s customers include the business of all sizes, public organizations, governments. The customer base is not limited to any industry, geography, or market segment.

Cisco has formed strategic alliances with other companies with the aim of product development, joint sales, and new market entry. Over the years, Cisco has also made many acquisitions and has acquired companies like MindMeld Inc., Duo Security Inc., Meraki, and many others.

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