What do you do when you are a huge company and your core product market is stagnating? You look for the next big thing. For Cisco, that next big thing is the Internet of Things. Since we have been doing the equivalent of the Internet of Things in industrial automation for years, Cisco has been a frequent partner of automation supplier companies. The results show up in this quarter’s earnings reports.
Cisco’s latest quarterly earnings report showed record revenues for this quarter. The enterprise networking giant reported $12.24 billion in revenue, which beat expectations of $12.16 billion. While it was a positive quarter, year-over-year growth is stagnating. Revenue was flat compared to the third quarter of 2013.
“It’s a difficult environment. You see lots of companies, like IBM and Juniper Networks, missing their quarter,” the company’s CEO John Chambers said, according to the New York Times.
The company, however, has its sights set on the IoT as an important source of revenue. On the call, Chambers added, “Our strategy is playing out as we delivered innovative solutions … to enable the next-generation of IP and the Internet of Everything.” He added that the company’s IoT efforts have “finally taken off,” and that the company plans to lead network equipment efforts as more enterprises continue to transition to the IoT.