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pww.comCisco Systems, Inc. Presents at Nasdaq 33rd Investor Program, Dec-02-2015 02:15 PM - SEHK:4333

SEHK:4333

Phil Smith Patrick [Director of UK Technology Strategy Board] 💬

During the presentation at the Nasdaq 33rd Investor Program, Phil Smith Patrick, the Director of the UK Technology Strategy Board and CEO of Cisco UK and Ireland, discussed several topics related to Cisco's business, market trends, and strategies. Here is a detailed summary of his comments:

  1. Business Performance and Currency Impact

    • Cisco had a strong quarter with good performance in revenue, gross margins, and operating profit.
    • The business performance reflects a balance across the world, with some parts doing well and others facing challenges.
    • Currency effects, particularly the strength of the US dollar, have had an impact, estimated at 1-2 points of growth reduction for the company overall.
    • Despite the strong US dollar, demand for Cisco's solutions remains strong, driven by the need for digitization and cloud adoption.

  2. Digitization and Cloud Adoption

    • There is strong demand for cloud solutions and Cisco’s offerings, with constraints often being the ability to invest and scale through the channel.
    • Digitization is a key driver for many customers, including major companies like Rolls-Royce, which seek to optimize their operations through digital transformation.
    • While there are challenges like privacy and security, these are being addressed, and the focus on cost savings and agility outweighs these concerns.

  3. European Cloud Environment

    • The UK is a leader in cloud adoption, with 15-20% of Cisco's business in the UK involving cloud services by the end of Q4 last year.
    • There is a lag in cloud adoption in some parts of Europe due to concerns around privacy, security, and data ownership.
    • Customers are increasingly interested in understanding their cloud usage and managing costs and security effectively.

  4. Cisco's Role in the Cloud

    • Cisco sees opportunities in providing cloud services and enabling hybrid cloud environments, allowing customers to build their own capabilities while leveraging managed services.
    • Partnerships play a crucial role in delivering cloud services, with Cisco enabling and supporting partners who sell these services to customers.

  5. Ericsson Partnership

    • The partnership with Ericsson provides opportunities to integrate Cisco’s products into service provider networks more effectively.
    • It enables Cisco to access service providers more efficiently through Ericsson's established channels.
    • The partnership aims to create joint solutions that leverage SDN and cloud technologies, benefiting both companies and their enterprise customers.

  6. Competitive Landscape

    • Cisco is focused on simplification and investing in areas where it has a competitive advantage.
    • The company emphasizes the power and capability of its high-end routing products, which are industry-leading and positioned to win significant deals.
    • In the switching and data center market, Cisco argues that it is more open than its competitors, with a focus on open standards and protocols.

  7. CEO Transition

    • John Chambers remains as Executive Chairman and is involved in strategic initiatives like country digitization.
    • Chuck Robbins is the CEO and makes the operational decisions, with a focus on running the business day-to-day.
    • John Chambers continues to maintain relationships and supports strategic initiatives, while Chuck Robbins drives the company forward.

These insights provide a comprehensive overview of Phil Smith Patrick's perspective on Cisco's current state, market trends, and strategic direction.

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