Due to the changing trends, much of the tech world is shifting to Cloud for storing big data as well as for Internet of things (IOT) related issues. In the year 2014, some major names in the hardware industry has embraced this change. The bleak stock price result of IBM (NYSE:IBM) shows the hurdles that are being faced by old-line tech titans. However, despite the difficulties Cisco (NASDAQ:CSCO) somehow managed to adopt the changing trend and the proof of that is evident in its stock price which has been the company’s best performance year to date.
However, not everyone out there agrees with that and rightly so, there are people who declare that Cisco (NASDAQ:CSCO) is going to face difficulties in the upcoming months and years. However, the more important question for the investors should be whether Cisco (NASDAQ:CSCO) has the potential to make a mark in the major markets like Cloud and IOS or not? By looking at the company’s financial results of the previous quarter the answer to the question seems to be yes.
Investors were not really impressed by Cisco’s (NASDAQ:CSCO) Q4 earning data as well as the year-end earnings data. The revenues collected were flat and nowhere near the revenues collected during the earlier time of the year, which had a negative impact on the company’s stock price. However, despite the issues, many investors managed to look beyond them and took notice of Cisco’s (NASDAQ:CSCO) reformed gross margins and the positive influence of its prompt purchase of shares.
The CEO of Cisco (NASDAQ:CSCO) John Chambers made an important confirmation where he affirmed that the trend is continually changing in the tech world, which will impact the company’s growth in the future. He said that Cisco (NASDAQ:CSCO) is fixated on growth, innovation and talent particularly in the departments of security, data center, software, cloud and Internet of everything (IOE).
Cisco’s (NASDAQ:CSCO) efforts of embracing the change proved beneficial in the company’s last quarter, the first quarter of the fiscal 2015 gained a record revenue of $52.1 billion which is higher than last year’s revenue of $48.2 billion. The company spent nearly $2 billion on dividends and gaining back 41 million shares.
For the year 2015 is very important than Cisco’s (NASDAQ:CSCO) strong recent quarter is its interest on IOE, especially “smart” cities. The company followed its footsteps of partnering with the city of Hamburg to build smart traffic, infrastructure as well as street lights through the Cloud; it declared another deal with Berlin which is similar in nature. Hence in the next 10 years, the smart cities are speculated to become an industry worthy of $1.5 trillion and Cisco (NASDAQ:CSCO) will be playing the role of the leader.
As per Gartner’s report, in the 3rd quarter which recently ended, Cisco (NASDAQ:CSCO) knocked off IBM along with other server sales forerunners. The company’s revenues improved 31% by reaching $783.7 million which were higher than 2013’s revenue of $599.3 million.
The company is fixated on offering networking solutions and related services.